Is this just a personal theory or does donated money really work harder when sent to a developing country to fund projects instead of further enhancing an already luxurious 'western' lifestyle?

I feel sure that the multiplier effect of sending money overseas is huge - provide a man with a fish and he eats for a day but give him equipment and skills and he can find his own food for ever - an old adage but relevant today. Give people the proper education, health and opportunities to take part in the global economy/community in a meaningful way and we will more quickly approach parity and happiness.