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A truly effective foreign aid effort would involve steps toward destroying gargantuan government beaurocracy in countries like Peru or Egypt, where large numbers of citizens live on unrecognized land and must undergo years of paperwork and bribes, simply to have their private property legally recognized. Because of the large scale lack of legal rights to private property, the otherwise economically ambitious are utterly barred from taking out loans or credit and starting businesses. In otherwords, they are economically paralyzed by giant government.

Ironically, the average armchair liberal loudly lobbies for an increase in foreign aid, naively assuming that throwing money at the beaurocracy will raise the standard of living, rather than further limit the economic freedom of the struggling but ambitious poor.