The West's aid dilemma and the Chinese solution?
AbstractAbstract There are currently two contrasting approaches towards aid policy in Africa: that followed by the West is well known for its conditionality, selectivity and focus on direct financial support, while the approach adopted by China eschews conditionality and concentrates on infrastructure building. The Chinese approach has been criticised for its failure to create direct employment and because, it is argued, its unconditionality hampers good governance in Africa. However, this paper argues that the West faces a dilemma, in that governance and its improvements are endogenous to the economic development of a country. Making aid conditional upon governance therefore unduly penalises countries at the bottom. The Chinese approach, in contrast, avoids this dilemma by directly targeting constraints to development; it may therefore be more effective in generating long-run growth, which may in turn foster good governance.
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Bibliographic InfoPaper provided by BWPI, The University of Manchester in its series Brooks World Poverty Institute Working Paper Series with number 17712.
Date of creation: 2012
Date of revision:
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- Xiaobo Zhang & Shenggen Fan, 2004.
"How Productive Is Infrastructure? A New Approach and Evidence from Rural India,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 86(2), pages 492-501.
- Zhang, Xiaobo & Fan, Shenggen, 2001. "How productive is infrastructure?: new approach and evidence from rural India," EPTD discussion papers 84, International Food Policy Research Institute (IFPRI).
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