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Aid and Reform in Failing States

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  • Lisa Chauvet
  • Paul Collier

Abstract

This paper reviews the policy implications of research on reform in failing states ( Chauvet and Collier 2006 , 2007a, 2007b , 2008 ; Chauvet et al. 2006 ; Chauvet et al. 2007a , 2007b ). After providing a precise definition of state failure and reform in such states, we present the internal constraints impeding reform in failing states. Élite preferences and insufficient social knowledge seem to be the major constraints on reform. We find that financial aid tends to allow the ruling élite to postpone reform. Technical assistance, however, has some effectiveness in relaxing the capacity constraint to implement reform, notably right at the beginning of reform. Copyright © 2008 The Authors.

Suggested Citation

  • Lisa Chauvet & Paul Collier, 2008. "Aid and Reform in Failing States," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 22(1), pages 15-24, May.
  • Handle: RePEc:bla:apacel:v:22:y:2008:i:1:p:15-24
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    File URL: http://hdl.handle.net/10.1111/j.1467-8411.2008.00209.x
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    References listed on IDEAS

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    1. Lisa Chauvet & Paul Collier & Anke Hoeffler, 2010. "Paradise Lost: The Costs of State Failure in the Pacific," Journal of Development Studies, Taylor & Francis Journals, vol. 46(5), pages 961-980.
    2. Chauvet, Lisa & Collier, Paul & Hoeffler, Anke, 2007. "The Cost of Failing States and the Limits to Sovereignty," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:dau:papers:123456789/4354 is not listed on IDEAS
    4. Lisa Chauvet & Paul Collier, 2006. "Helping Hand ? Aid to Failing States," Working Papers DT/2006/14, DIAL (Développement, Institutions et Mondialisation).
    5. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
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    Cited by:

    1. Kondoh, Hisahiro & Kobayashi, Takaaki & Shiga, Hiroaki & Sato, Jin, 2010. "Diversity and Transformation of Aid Patterns in Asia's "Emerging Donors"," Working Papers 21, JICA Research Institute.

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