Waylaid Dialectic

March 11, 2011

Bad Maths

Filed under: Aid — terence @ 8:38 am

Mean while, back home in New Zealand, the Minister in charge of our aid programme opines about overheads:

The share of our total aid budget – that’s $525 million this year – that we spend on overheads is far too high.

It is approximately $45 million if you look simply at the costs of running what is now called the International Development Group, or IDG.

But when you account for IDG’s share of the overall MFAT corporate overheads – something that has only happened as a result of changes initiated by John Allen and myself – the cost of doing development business comes to $64 million, or roughly 12% of the total budget.

That figure needs to come down.

He’s right, isn’t he?

Um, no, not so much…over at DevPolicy I explain why not, in the process taking a tilt at the Myth of Low Overheads.


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