IDEAS home Printed from https://ideas.repec.org/a/bla/devchg/v22y1991i4p645-685.html
   My bibliography  Save this article

Foreign Aid after the Cold War

Author

Listed:
  • Keith Griffin

Abstract

This paper argues that foreign aid programmes originated as part of the ideological confrontation known as the Cold War and that the motives behind aid were always more political than economic. It is further argued that the economic justifications for foreign aid — filling ‘gaps’ in capital, technology and skills—are suspect and that the economic benefits in terms of long‐term development are at best negligible. Turning to the future, foreign aid programmes are bound to change to reflect the new realities of global international relations. Nine specific predictions are made about the future size and composition of aid programmes. The outlook for those who favour aid is not bright, but recent changes in thinking about development suggest that more sell‐reliant strategies could well be more beneficial to the poor than conventional aid‐supported strategies.

Suggested Citation

  • Keith Griffin, 1991. "Foreign Aid after the Cold War," Development and Change, International Institute of Social Studies, vol. 22(4), pages 645-685, October.
  • Handle: RePEc:bla:devchg:v:22:y:1991:i:4:p:645-685
    DOI: 10.1111/j.1467-7660.1991.tb00430.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-7660.1991.tb00430.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1467-7660.1991.tb00430.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mosley, Paul & Hudson, John & Horrell, Sara, 1987. "Aid, the Public Sector and the Market in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 97(387), pages 616-641, September.
    2. Wasow, Bernard, 1979. "Saving and Dependence with Externally Financed Growth," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 150-154, February.
    3. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
    4. Griffin, Keith, 1970. "Foreign Capital, Domestic Savings and Economic Development," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 32(2), pages 99-112, May.
    5. Papanek, Gustav F, 1972. "The Effect of Aid and other Resource Transfers on Savings and Growth in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 82(327), pages 934-950, September.
    6. Mosley, Paul, 1980. "Aid, Savings and Growth Revisited," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(2), pages 79-95, May.
    7. James H. Lebovic, 1988. "National Interests and US Foreign Aid: The Carter and Reagan Years," Journal of Peace Research, Peace Research Institute Oslo, vol. 25(2), pages 115-135, June.
    8. Dacy, Douglas C, 1975. "Foreign Aid, Government Consumption, Saving and Growth in Less-Developed Countries," Economic Journal, Royal Economic Society, vol. 85(339), pages 548-561, September.
    9. Griffin, Keith B & Enos, J L, 1970. "Foreign Assistance: Objectives and Consequences," Economic Development and Cultural Change, University of Chicago Press, vol. 18(3), pages 313-327, April.
    10. Griffin, Keith, 1974. "The international transmission of inequality," World Development, Elsevier, vol. 2(3), pages 3-15, March.
    11. Morisset, Jacques, 1989. "The impact of foreign capital inflows on domestic savings reexamined: The case of Argentina," World Development, Elsevier, vol. 17(11), pages 1709-1715, November.
    12. Boyce, James K. & Zarsky, Lyuba, 1988. "Capital Flight from the Philippines, 1962-1986," Philippine Journal of Development JPD 1988 Vol. XV No. 2-c, Philippine Institute for Development Studies.
    13. Gersovitz, Mark, 1982. "The estimation of the two-gap model," Journal of International Economics, Elsevier, vol. 12(1-2), pages 111-124, February.
    14. Chenery, Hollis B & Eckstein, Peter, 1970. "Development Alternatives for Latin America," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 966-1006, Part II, .
    15. Pastor, Manuel Jr., 1990. "Capital flight from Latin America," World Development, Elsevier, vol. 18(1), pages 1-18, January.
    16. Psacharopoulos, George, 1988. "Education and Development: A Review," The World Bank Research Observer, World Bank, vol. 3(1), pages 99-116, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kohnert, Dirk & Elwert, Georg & Bierschenk, Thomas, 1993. "The long-term effects of development aid - Empirical studies in rural West Africa," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(1), pages 83-111.
    2. Yu Wang & Shuai Jin, 2013. "Veto players and foreign aid provision," Constitutional Political Economy, Springer, vol. 24(1), pages 43-56, March.
    3. Robert K. Fleck & Christopher Kilby, 2001. "Foreign Aid and Domestic Politics: Voting in Congress and the Allocation of USAID Contracts across Congressional Districts," Southern Economic Journal, John Wiley & Sons, vol. 67(3), pages 598-617, January.
    4. Krishna Chaitanya Vadlamannati & Yuanxin Li & Samuel Brazys & Alexander Dukalskis, 2019. "Building Bridges or Breaking Bonds? The Belt and Road Initiative and Foreign Aid Competition," Working Papers 201906, Geary Institute, University College Dublin.
    5. Taylor Fahy Winkleman & Grace Bagwell Adams, 2017. "An empirical assessment of the relationship between Official Development Aid and child mortality, 2000–2015," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 62(2), pages 231-240, March.
    6. Henry Scheyvens, 2005. "Reform of Japan’s official development assistance: a complete overhaul or merely a fresh coat of paint?," Progress in Development Studies, , vol. 5(2), pages 89-98, April.
    7. Mark Duffield, 1993. "NGOs, Disaster Relief and Asset Transfer in the Horn: Political Survival in a Permanent Emergency," Development and Change, International Institute of Social Studies, vol. 24(1), pages 131-158, January.
    8. Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, University Library of Munich, Germany.
    9. Thompson, John, 1995. "Participatory approaches in government bureaucracies: Facilitating the process of institutional change," World Development, Elsevier, vol. 23(9), pages 1521-1554, September.
    10. Beletskaya, M., 2019. "Bilateral International Assistance: Factors for Donor Countries," Journal of the New Economic Association, New Economic Association, vol. 43(3), pages 95-114.
    11. Maestro Yarza, Irene & Martínez Peinado, Javier, 2012. "La cooperación al desarrollo como parte de la estructura económica del capitalismo global/Development Cooperation as a Part of the Economic Structure of Global Capitalism: Alternative or Reinforcement," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 811-836, Diciembre.
    12. Sandra Sideri, 1993. "Restructuring the Post‐Cold War World Economy: Perspectives and a Prognosis," Development and Change, International Institute of Social Studies, vol. 24(1), pages 7-28, January.
    13. Yu Wang, 2013. "Veto Players and Foreign Aid Inflows," Oxford Development Studies, Taylor & Francis Journals, vol. 41(3), pages 391-408, September.
    14. Padayachee, Vishnu, 1995. "Foreign capital and economic development in South Africa: Recent trends and postapartheid prospects," World Development, Elsevier, vol. 23(2), pages 163-177, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Denis Kessler & Dominique Strauss-Kahn, 1984. "Existe-t-il un lien entre l'épargne intérieure et l'afflux de capitaux extérieurs ?," Revue Tiers Monde, Programme National Persée, vol. 25(98), pages 269-297.
    2. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398, April.
    3. Ramesh Durbarry, 2004. "Foreign aid: is it all consumed?," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(2), pages 189-199.
    4. Innocent .U. Duru & Bartholomew .O.N. Okafor & Millicent Adanne Eze & Gabriel .O. Ebenyi, 2020. "Foreign Aid and Economic Growth: Empirical Evidence from Nigeria," Growth, Asian Online Journal Publishing Group, vol. 7(1), pages 35-50.
    5. Zafar Iqbal, 1993. "Institutional Variations in Saving Behaviour in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1293-1311.
    6. Maurice Obstfeld., 1998. "Foreign Resource Inflows, Saving, and Growth," Center for International and Development Economics Research (CIDER) Working Papers C98-099, University of California at Berkeley.
    7. Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth," Working Papers 44, Center for Global Development.
    8. Peter Boone, 1995. "Politics and the Effectiveness of Foreign Aid," NBER Working Papers 5308, National Bureau of Economic Research, Inc.
    9. Mark McGillivray & Simon Feeny & Niels Hermes & Robert Lensink, 2005. "It Works; It Doesn't; It Can, But that Depends...: 50 Years of Controversy Over the Macroeconomic Impact of Development Aid," WIDER Working Paper Series RP2005-54, World Institute for Development Economic Research (UNU-WIDER).
    10. Mark McGillivray & Simon Feeny & Niels Hermes & Robert Lensink, 2006. "Controversies over the impact of development aid: it works; it doesn't; it can, but that depends …," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(7), pages 1031-1050.
    11. Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
    12. Tadesse, Tasew, 2011. "Foreign aid and economic growth in Ethiopia," MPRA Paper 33953, University Library of Munich, Germany, revised 20 Sep 2011.
    13. Yahyaoui, Ismahene & Hamdaoui, Mekki & Bouchoucha, Najeh, 2019. "Official development aid effectiveness and economic growth in African countries: The role of the governance," MPRA Paper 95410, University Library of Munich, Germany.
    14. Sethi, Narayan & Bhujabal, Padmaja & Das, Aurolipsa & Sucharita, Sanhita, 2019. "Foreign aid and growth nexus: Empirical evidence from India and Sri Lanka," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 1-12.
    15. Jeffrey B. Nugent & Makoto Yano, 1999. "Aid, Nontraded Goods, and the Transfer Paradox in Small Countries," American Economic Review, American Economic Association, vol. 89(3), pages 431-449, June.
    16. P. B. Eregha, 2013. "Aid Flows and Growth Diagnosis: Empirical Evidence for A Panel of ECOWAS Countries," Economics Bulletin, AccessEcon, vol. 33(4), pages 2627-2633.
    17. Liutang Gong & Heng-fu Zou, 2000. "Foreign Aid Reduces Domestic Capital Accumulation and Increases Foreign Borrowing: A Theoretical Analysis," Annals of Economics and Finance, Society for AEF, vol. 1(1), pages 147-163, May.
    18. Mahmoud M. Sabra & Shaker Sartawi, 2015. "Development Impacts of Foreign Aid on Economic Growth, Domestic Savings and Dutch Disease Presence in Palestine," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(11), pages 532-542, November.
    19. Goyal, A., 1992. "The Role of Foreign Aid and the foreign exchange Constraint in Growth : Some Extensions," Papers 70, Indira Gandhi Institute of Development Research-.
    20. Sethi, Narayan & Bhujabal, Padmaja & Sahoo, Malayaranjan & Sucharita, Sanhita, 2019. "Does Foreign Aid Act as an Instrument of Economic Growth in India and Sri Lanka?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 3-19.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:devchg:v:22:y:1991:i:4:p:645-685. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0012-155X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.