There are three steps New Zealand can take to make its bilateral development assistance more effective in reducing poverty. These steps are ‘easy’ because they are unilateral: they improve the effectiveness of development assistance without requiring changes in the politics or policies of developing countries. By far the most important of these three steps is to focus New Zealand’s bilateral aid on those poor countries that are democracies pursing policies of market-led growth. One of the major findings of recent research is that development aid only reinforces what is already there. New Zealand should accept the developing countries as it finds them and pick and choose so that it helps those already helping themselves.
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Find related papers by JEL classification: D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior F35 - International Economics - - International Finance - - - Foreign Aid O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy P2 - Economic Systems - - Socialist Systems and Transition Economies P3 - Economic Systems - - Socialist Institutions and Their Transitions P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
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Craig Burnside & David Dollar, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
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