Criticism

Most of the children living in institutions around the world have a surviving parent or close relative, and the most commonly entered orphanages because of poverty. It is speculated that flush with money, orphanages are increasing and push for children to join even though demographic data show that even the poorest extended families usually take in children whose parents have died. Experts and child advocates maintain that orphanages are expensive and often harm children's development by separating them from their families and that it would be more effective and cheaper to aid close relatives who want to take in the orphans.

Children living in orphanages for prolonged periods get behind in development goals, have worse mental health. Orphanage children are not included in statistics making it easy to traffic them or abuse them in other ways.citation needed There are campaigns to include orphanage children and street children in progress statistics.