Channing Arndt (Purdue University) Sam Jones (Ministry of Planning and Development, Mozambique) Finn Tarp (Department of Economics, University of Copenhagen)
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This paper considers the relationship between external aid and development in Mozambique from 1980 to 2004. The main objective is to identify the specific mechanisms through which aid has influenced the developmental trajectory of the country and whether one can plausibly link outcomes to aid inputs. We take as our point of departure a growth accounting analysis and review both intended and unintended effects of aid. Mozambique has benefited from sustained aid inflows in conflict, post-conflict and reconstruction periods. In each of these phases aid has made an unambiguous, positive contribution both enabling and supporting rapid growth since 1992. At the same time, the proliferation of donors and aid-supported interventions has burdened local administration and there is a distinct need to develop government accountability to its own citizens rather than donor agencies. In ensuring sustained future growth, Mozambique will have to develop its capacity to maximise the benefits from its natural resources while ensuring at the same time the necessary framework is put in place to promote constructive integration in international markets.
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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number
06-13.
Length: 80 pages Date of creation: Jun 2006 Date of revision: Handle: RePEc:kud:kuiedp:0613
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Find related papers by JEL classification: F35 - International Economics - - International Finance - - - Foreign Aid O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Heltberg, Rasmus & Simler, Kenneth & Tarp, Finn, 2001.
"Public Spending and Poverty in Mozambique,"
Working Papers
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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Tarp, Finn, 2006.
"Aid and Development,"
MPRA Paper
13171, University Library of Munich, Germany.
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