Money to the People

Delivering foreign aid directly to the world's poor by electronic transfer would cut waste and reduce corruption.

By Henry Jackelen and Jamie Zimmerman
Posted Friday, Feb. 25, 2011, at 7:05 AM ET

Earlier this year, the $21.7 billion Global Fund to Fight AIDS, Tuberculosis, and Malaria was forced to retract or suspend millions of dollars in aid after rampant corruption was discovered. An audit of a modest portion of selected programs found staggering percentages of money misspent or unaccounted for: 67 percent in Mauritania; 36 percent in Mali; and 30 percent in Djibouti. There were also serious concerns involving millions of dollars sent to Zambia. Even more remarkable, though, was the fund's response to the resulting criticism.