The misallocation of (US) foreign aid....
Ethiopia, one of the poorest countries in the world, has a largely agricultural economy and suffers from periodic famines. Yet in 2007, about 50 percent of U.S. assistance to Ethiopia went to HIV/AIDS prevention, 38 percent to emergency food relief, and 7 percent to child survival, family planning, and malaria prevention and treatment. Only 1.5 percent went to agriculture, 1.5 percent to economic growth, 1.5 percent to education, and 1 percent to improving governance.
Read Chris Blattman's complete post here.
In Kenya I recently met with Andrew Youn from the OneAcre Fund. This fund is doing exactly what above is sggested; develop the potential tha is lying unused or marginally used in a lot of developing countries / areas.
I therefore think Andrew is an example of "Development Aid 3.0" on which I will post soon.(have a nasty flue right now and a lot of other work waiting...)