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Aid E ectiveness in Times of Political Change: Lessons from the Post-Communist Transition

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  • Olofsgård, Anders

    ()
    (Stockholm Institute of Transition Economics)

  • Perrotta, Maria

    ()
    (Stockholm Institute of Transition Economics)

  • Frot, Emmanuel

    ()
    (Microeconomix)

Abstract

We argue that the tilt towards donor interests over recipient needs in aid allocation and practices may be particularly strong in new partnerships. Using the natural experiment of Eastern transition we find that commercial and strategic concerns influenced both aid flows and entry in the first half of the 1990s, but much less so later on. We also find that fractionalization increased and that early aid to the region was particularly volatile, unpredictable and tied. Our results may explain why aid to Iraq and Afghanistan has had little development impact and serve as warning for Burma and Arab Spring regimes.

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Bibliographic Info

Paper provided by Stockholm Institute of Transition Economics, Stockholm School of Economics in its series SITE Working Paper Series with number 25.

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Length: 34 pages
Date of creation: 22 Oct 2013
Date of revision:
Handle: RePEc:hhs:hasite:0025

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Postal: Stockholm Institute of Transition Economics, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden
Phone: (+46 8) 736 9670
Fax: (+46 8) 31 64 22
Web page: http://www.hhs.se/site/
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Keywords: foreign aid; development;

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