Abstract: Foreign aid for health in low- and middle-income countries has increased five-fold over the past 25 years. Between 2005 and 2010, health aid made up more than 30% of all health spending in low-income countries. Global health is also an increasingly important component of U.S. foreign aid, rising steadily from under 4% of all U.S. non-military aid in 1990 to 22.7% in 2011. There is growing evidence for the role of health aid in improving health among recipient countries, but is that it? In this talk I will address the arguments for and against health as a focus of aid efforts and present initial evidence on the role of health aid on human capital and economic development.