Project Aid or Budget Aid? The Interests of Governments and Financial Institutions
The paper compares different aid policy instruments and their effect on the target group. Starting from a situation where interest groups compete for the resources of the government, international financial institutions aim to change the policy outcome. They can either directly support one group or condition their financial help to the government on its policy. Apart from a normative analysis which policy is more adequate to help one group, the paper asks what happens if the aid agency is driven by bureaucratic self-interest. Copyright � 2006 The Author; Journal compilation � 2006 Blackwell Publishing Ltd.
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Volume (Year): 10 (2006)
Issue (Month): 2 (05)
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References listed on IDEAS
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0310004, EconWPA, revised 08 Jan 2004.
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- Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
- Michaelowa, Katharina & Hefeker, Carsten, 2003. "Can Process Conditionality Enhance Aid Effectiveness? The Role of Bureaucratic Interest and Public Pressure," HWWA Discussion Papers 239, Hamburg Institute of International Economics (HWWA).
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