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The political economy of development assistance: peril to government quality dynamics in Africa

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  • Asongu Simplice

    (Yaoundé/Cameroun)

Abstract

This paper assesses the effectiveness of foreign aid in improving government institutions in 52 African countries using updated data (1996-2010). Findings suggest development assistance deteriorates government quality dynamics of corruption-control, political-stability, rule of law, regulation quality, voice and accountability and government effectiveness. It is therefore a momentous epoque to solve the second tragedy of foreign aid; high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who really care about the poor to hold aid agencies accountable for results.

Suggested Citation

  • Asongu Simplice, 2012. "The political economy of development assistance: peril to government quality dynamics in Africa," Working Papers of the African Governance and Development Institute. 12/008, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:12/008
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Simplice A. Asongu, 2013. "Fighting Corruption when Existing Corruption-Control Levels Count: What do Wealth-Effects Tell us in Africa?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(3), pages 53-74, October.
    2. Asongu Simplice, 2014. "Development thresholds of foreign aid effectiveness in Africa," International Journal of Social Economics, Emerald Group Publishing, vol. 41(11), pages 1131-1155, November.
    3. Asongu Simplice, 2012. "Determinants of Health Professionals’ Migration in Africa," Working Papers of the African Governance and Development Institute. 12/009, African Governance and Development Institute..
    4. Simplice Asongu, 2014. "The Questionable Economics of Development Assistance in Africa: Hot-Fresh Evidence, 1996–2010," The Review of Black Political Economy, Springer;National Economic Association, vol. 41(4), pages 455-480, December.
    5. Simplice Asongu, 2013. "How Would Population Growth Affect Investment in the Future? Asymmetric Panel Causality Evidence for Africa," African Development Review, African Development Bank, vol. 25(1), pages 14-29.
    6. Kodila-Tedika , Oasis, 2014. "Forget your gods: African evidence on the relation between state capacity and cognitive ability of leading politicians," European Economic Letters, European Economics Letters Group, vol. 3(1), pages 7-11.
    7. Asongu, Simplice & Jellal, Mohamed, 2014. "International aid corruption and fiscal behavior policy," MPRA Paper 57192, University Library of Munich, Germany.
    8. Asongu Simplice, 2012. "Are financial benefits of financial globalization questionable until greater domestic financial development has taken place?," Working Papers of the African Governance and Development Institute. 12/007, African Governance and Development Institute..
    9. Simplice Asongu, 2014. "Globalization (fighting), corruption and development: How are these phenomena linearly and nonlinearly related in wealth effects?," Journal of Economic Studies, Emerald Group Publishing, vol. 41(3), pages 346-369, May.
    10. Simplice A. Asongu & Mohamed Jellal, 2014. "International aid, corruption and fiscal policy behavior," Research Africa Network Working Papers 14/007, Research Africa Network (RAN).
    11. Simplice Asongu, 2014. "Financial development dynamic thresholds of financial globalization: Evidence from Africa," Journal of Economic Studies, Emerald Group Publishing, vol. 41(2), pages 166-195, March.
    12. Simplice A. Asongu, 2015. "Institutional benchmarking of foreign aid effectiveness in Africa," International Journal of Social Economics, Emerald Group Publishing, vol. 42(6), pages 543-565, June.
    13. Simplice A. Asongu & Mohamed Jellal, 2014. "Foreign aid, investment and fiscal policy behavior: theory and empirical evidence," Research Africa Network Working Papers 14/030, Research Africa Network (RAN).
    14. Asongu Simplice, 2013. "Consult your gods: the questionable economics of development assistance in Africa," Working Papers of the African Governance and Development Institute. 13/002, African Governance and Development Institute..
    15. Asongu, Simplice A., 2013. "How do institutions matter in the income-equalizing effect of mobile phone penetration?," European Economic Letters, European Economics Letters Group, vol. 2(2), pages 56-61.

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    More about this item

    Keywords

    Foreign Aid; Political Economy; Development; Africa;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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