The impact of sanctions on the poor

I think it’s important to understand that the aid cuts announced by the State Department are probably going to have virtually no impact on the poor in Honduras. It is a relatively small amount of money, and all of it will likely be restored anyways within a few months. It’s entirely possible that most, if not all, of that money was not even scheduled to be disbursed any time soon. And much of it was destined for highway construction and agricultural production programs (not humanitarian projects) that do not immediately benefit the poor in Honduras. In fact, much of the foreign aid that is channeled through the Honduran government does not benefit the poor. The money gets lost in the pipeline, which is why Honduras remains the third or fourth poorest country in the Western Hemisphere. Most foreign aid programs simply aggravate income inequality in countries like Honduras that do not have well educated populations that know how to take full advantage of government aid programs.

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