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Notes on the Grants Economy of Foreign Aid

Author

Listed:
  • Bruce D. Fitzgerald

    (Peace Science Department University of Pennsylvania)

Abstract

A donor may use the inducement of grants to alter the manner in which recipients' lives are lived. A general model of a discriminating donor allocating grants among a number of potential recipients is derived and used to find the behavioral implications of the foreign aid objective of minimizing arms expenditures in developing nations. It is shown that a nation will receive greater sums of aid: (a) the more compliant it is to the tastes of the donor, (b) the more restrictive the terms of the grant, and (c) the lower its income level.

Suggested Citation

  • Bruce D. Fitzgerald, 1975. "Notes on the Grants Economy of Foreign Aid," Conflict Management and Peace Science, Peace Science Society (International), vol. 1(2), pages 131-140, February.
  • Handle: RePEc:sae:compsc:v:1:y:1975:i:2:p:131-140
    DOI: 10.1177/073889427500100204
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    References listed on IDEAS

    as
    1. Kenneth E. Boulding, 1973. "Love, Fear and the Economist," Challenge, Taylor & Francis Journals, vol. 16(3), pages 32-39, July.
    2. Bruno S. Frey, 1975. "A Roundtable on Foreign Aid Weapon Exports and Aid to Developing Countries," Conflict Management and Peace Science, Peace Science Society (International), vol. 1(2), pages 117-126, February.
    3. Mark V. Pauly, 1970. "Efficiency In The Provision Of Consumption Subsidies," Kyklos, Wiley Blackwell, vol. 23(1), pages 33-57, February.
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