A Primer on Foreign Aid
AbstractControversies about aid effectiveness go back decades. Some experts charge that aid has enlarged government bureaucracies, perpetuated bad governments, enriched the elite in poor countries, or just been wasted. Others argue that although aid has sometimes failed, it has supported poverty reduction and growth in some countries and prevented worse performance in others. This new working paper by CGD senior fellow Steve Radelet explores trends in aid, the motivations for aid, its impacts, and debates about reforming aid. It begins by examining aid magnitudes and who gives and receives aid. It discusses the multiple motivations and objectives of aid, some of which conflict with each other. It then explores the empirical evidence on the relationship between aid and growth, which is divided between research that finds no relationship and research that finds a positive relationship (at least under certain circumstances). It also examines some of the key challenges in making aid more effective, including the principal-agent problem and the related issue of conditionality, and concludes by examining some of the main proposals for improving aid effectiveness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 92.
Length: 24 pages
Date of creation: Jul 2006
Date of revision:
Contact details of provider:
Web page: http://www.cgdev.org
Foreign aid; poverty reduction;
Find related papers by JEL classification:
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
- O00 - Economic Development, Technological Change, and Growth - - General - - - General
- F00 - International Economics - - General - - - General
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- repec:idb:brikps:6725 is not listed on IDEAS
- George Mavrotas & Bazoumana Ouattara, 2007. "Aid Modalities and Budgetary Response: Panel Data Evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 143(4), pages 720-741, December.
- Katharina Stepping, 2012. "Do poor health conditions lead to higher allocation of development assistance?," MAGKS Papers on Economics 201230, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Attia, Sayed Moawad, 2009. "The Role of USAID in Development in Egypt," MPRA Paper 16578, University Library of Munich, Germany, revised 02 Aug 2009.
- James, Ang, 2009.
"Financial Liberalization and the Aid-Growth Relationship in India,"
14411, University Library of Munich, Germany.
- James B. Ang, 2009. "Financial Liberalization And The Aid Growth Relationship In India," Development Research Unit Working Paper Series 10-09, Monash University, Department of Economics.
- Stijn Claessens & Danny Cassimon, 2007.
"Empirical evidence on the new international aid architecture,"
WEF Working Papers
0026, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
- Danny Cassimon & Stijn Claessens & Bjorn Van Campenhout, 2007. "Empirical Evidence on the New International Aid Architecture," IMF Working Papers 07/277, International Monetary Fund.
- Cassimon, Danny & Claessens, Stijn & Campenhout, Bjorn van, 2007. "Empirical Evidence on the New International Aid Architecture," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 2, Verein für Socialpolitik, Research Committee Development Economics.
- Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
- Wilson, Sven E., 2011. "Chasing Success: Health Sector Aid and Mortality," World Development, Elsevier, vol. 39(11), pages 2032-2043.
- Osakwe, Patrick N. & Ben Hammouda, Hakim, 2006. "Financing Development in Africa: Trends, Issues and Challenges," MPRA Paper 1815, University Library of Munich, Germany.
- Mina Baliamoune-Lutz & George Mavrotas, 2009.
"Aid Effectiveness: Looking at the Aid-Social Capital-Growth Nexus,"
Review of Development Economics,
Wiley Blackwell, vol. 13(s1), pages 510-525, 08.
- Baliamoune-Lutz, Mina N. & Mavrotas, George, 2008. "Aid Effectiveness: Looking at the Aid-Social Capital-Growth Nexus," Working Paper Series RP2008/75, World Institute for Development Economic Research (UNU-WIDER).
- repec:idb:brikps:6728 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Roodman).
If references are entirely missing, you can add them using this form.