Astral Codex Ten Podcast Sorry, I Still Think MR Is Wrong About USAID
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Jun 14, 2025 The discussion dives into the complexities of USAID funding and the often-misunderstood overhead costs of charities. It critiques political exaggerations surrounding aid and highlights the struggles of real-world medical aid delivery. Personal narratives reveal the emotional toll of witnessing preventable deaths due to funding issues. The conversation advocates for transparency in humanitarian efforts and pushes back against misconceptions about aid distribution, championing a more informed debate on foreign assistance.
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USAID Overhead Misunderstood
- USAID's reported 30% overhead is an accounting measure called NICRA, different from actual overhead.
- Real overhead for partners like Catholic Relief Services is closer to 6%, much lower than often perceived.
Aid Mostly Goes to Direct Services
- Most USAID money goes to direct aid like food and local salaries, not overhead.
- Sub-grants to local partners add minimal additional overhead, often subsidized by the main NGO.
Local vs US Charity Efficiency Unknown
- The efficiency of funding local versus US charities is unclear and needs careful analysis.
- Local groups face challenges like corruption and compliance costs but may have lower overhead salaries.