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Do No Harm: Aid, Weak Institutions and the Missing Middle in Africa

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  • Nancy Birdsall

Abstract

The implicit assumption of the donor community is that Africa is trapped by its poverty, and that aid is necessary if it is to escape. This article suggests an alternative view: that Africa is caught in an institutional trap, signalled and reinforced by the small share of income of its independent middle strata. Theory and historical experience elsewhere suggest that a robust middle-income group contributes critically to the creation and sustenance of healthy institutions, particularly of the state. The article argues that if external aid is to be helpful for institution-building in Africa's weak and fragile states, donors need to emphasise not providing more aid but minimising the risks more aid poses for this group. Copyright 2007 Blackwell Publishing Ltd.

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  • Nancy Birdsall, 2007. "Do No Harm: Aid, Weak Institutions and the Missing Middle in Africa," Development Policy Review, Overseas Development Institute, vol. 25(5), pages 575-598, September.
  • Handle: RePEc:bla:devpol:v:25:y:2007:i:5:p:575-598
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    Cited by:

    1. Ezequiel Cabezon & Tej Prakash, 2008. "Public Financial Management and Fiscal Outcomes in Sub-Saharan African Heavily-Indebted Poor Countries," IMF Working Papers 08/217, International Monetary Fund.
    2. Wim Naudé, 2010. "Africa And The Global Economic Crisis: A Risk Assessment And Action Guide," EUI-RSCAS Working Papers 27, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    3. Naudé, Wim, 2010. "Development Progress in sub-Saharan Africa: Lessons from Botswana, Ghana, Mauritius and South Africa," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).
    4. Léonce Ndikumana, 2013. "Applying Evaluation to Development and Aid: Can Evaluation Bridge the Micro-macro Gaps in Aid Effectiveness?," Published Studies article-leonce-ndikumana-, Political Economy Research Institute, University of Massachusetts at Amherst.
    5. Maia Green, 2012. "Co-producing ineffective states: social knowledge, social policy and social citizenship in Africa and in development," Brooks World Poverty Institute Working Paper Series esid-014-12, BWPI, The University of Manchester.
    6. Christoph Böhringer & Jared C. Carbone & Thomas F. Rutherford, 2016. "The Strategic Value of Carbon Tariffs," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 28-51, February.
    7. Nancy Birdsall, 2007. "Reflections on the Macro Foundations of the Middle Class in the Developing World," Working Papers 130, Center for Global Development.
    8. Mina Baliamoune-Lutz, 2007. "Institutions, Trade, and Social Cohesion in Fragile States," ICER Working Papers 24-2007, ICER - International Centre for Economic Research.
    9. Andy Sumner, 2012. "The Buoyant Billions: How “Middle Class†Are the New Middle Classes in Developing Countries? (And Why Does It Matter?)," Working Papers id:5169, eSocialSciences.
    10. Mina Baliamoune-Lutz, 2008. "Institutions, Trade, and Social Cohesion in Fragile States," Brooks World Poverty Institute Working Paper Series 3908, BWPI, The University of Manchester.
    11. Smith, Ransford, 2015. "The Caribbean and the post-2015 development agenda," Studies and Perspectives – ECLAC Subregional Headquarters for The Caribbean 43, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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