Leah Pinto blogs at NextBillion.net to say that she doesn't believe that increased competition between aid agencies will make them more efficient. Well, that's true, but I think she's missed the point - competition may not increase efficiency, but if aid agencies are properly evaluated, with the best ones expanded and the worst shut down, that would be another matter.
Leah also proposes that the private sector be strengthened and that sustainable microfinance institutions be established.
Now, what if aid were used instead to create viable, sustainable microfinance institutions, where the poor could have access to capital and go about their endeavors? What if private enterprise were encouraged to set up shop in developing regions in a method of BOP development?
That sounds nice, but Leah is proposing results rather than methods. Nobody knows how to set up thriving private enterprise, although of course everyone, including PSDBlog, has pet ideas. 'The Market for Aid' proposes experiment and rigorous evaluation - then we'd find out what really worked. So far serious controlled trials (which are taken for granted in evaluating new medical treatments) have been few and far between.
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