Tuesday 6 May 2008

Principles common to business and aid allocation

There are some principles which are common to both business and aid allocation. One might be diversification, avoiding putting all the donor's or investor's money in a single recipient or region in case the project fails and there is no benefit to the commitment. Another might be avoiding sending new money to a failing project.

I wouldn't push the analogy too far, but businesspeople who are concerned about donating in the most effective way could use portfolio analysis techniques.

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