The political economy of donor funding: Insights from USAID

USAID is one of the world’s leading donors with an annual budget of US $27 billion. In this interview, Louise Fox, Chief Economist at USAID, discusses how aid priorities are set, the political economy of US donor funding and, the importance and shortcomings of research in informing spending decisions. Drawing from various pieces of evidence she emphasises the role of the private sector in creating jobs and spurring growth in developing countries.