“Individually rational behaviour can be collectively irrational. And that’s why the regulators have to do what they can to constrain individual behaviour, so that it doesn’t lead to collectively irrational outcomes.”
'Development aid’ is always surrounded by questions. Some argue whether it shows results, and some worry about the way it is spent. And the imminent question is, where does it go? Well, it does have some impact. According to the latest UNESCO report ‘Financing Education in Sub-Saharan Africa’, development aid accounts for 50% of the government education budget in some countries of Africa. “Over the last decade public spending on education in Africa has increased by more than 6% each year”, says the report. However, much remains to be done to distribute it well between primary and higher education, as often requirements of the primary education system suffer. Thus, cutting aid is definitely not a smart move as explained by Liz Allcock and Jimmy Kainja in their post ‘Cutting UK aid to Malawi will hurt the poor, not the leaders’.