Tuesday, October 26, 2010

Exercise of reader: Please explain "aid fungibility" to our Secretary of State

Update: OK I finally define fungibility (see the end of the post). This is the brothels.

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United States, said Friday it has provided assistance for members of Pakistan in the next five years.

The Secretary of State Hillary Rodham Clinton made the announcement in Washington...

Announcing using, Mrs. Clinton has not discussed the administration moves to stop the funding of certain elements of the Pakistani army killed unarmed prisoners and civilians.

Thursday, senior and responsible for the Congress said that administration planned Obama cut funds to these units.

Leave today's NYT

T or F: aid to the Pakistani army while you "financing of certain elements of the judgment in" killing civilians is equivalent to the increase in aid to these same "certain elements."

Update: OK, OK, I'll tell you guys really I to define "aid fungibility.Here is the official definition given by the World Bank Chief Economist in the 1950s:

This is when we think we are going to finance a powerhouse, and we are really going to finance a House of prostitution.

Support interchangeability is when the donor gives to the Government for Good Thing and refused to fund the Bad Thing b.Le reduced intelligent Government then its own spending on Good Thing that one with the help of, this total (donor + Government) expenditure on A Good Thing is inchangé.Le Government uses his savings on A spend more on Bad Thing b.Donc de facto (relative to the pre - aid situation), the donor has really no effect on the a and did increase the spending of Bad Thing b.

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