Vaste comments on Efficient Charity: Do Unto Others... - Less Wrong
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Perhaps a better idea would be to spend money on education of women in poor areas, something that is known to reduce the fertility rate.<citation needed> By reducing the fertility rate we also reduce the number of poor, starving, dying in HIV etc children born into this world.
I think that simply measuring the number of dead children may be useful as a simplification, but it's too simplistic. Really, to me it seems like it's just something that people believing in axiomatic morals are having problems dealing with. "But, think of the children!"
If the answer to "is it better to spend this money on saving a kids life?" is always yes, I'd say you have a problem with your value system.