Effective Foreign Aid, Economic Integration and Subsidiarity: Lessons from Europe
An importance source of finance for poorer economies, is foreign aid; this paper examines some controversies surrounding its provision. The advanced economies have provided hundreds of billions of dollars in aid to the developing world over the last several decades; although this has done much good in some cases, many of these countries have grown very little, especially during the last two decades of the twentieth century. In fact some have argued that this aid has actually hindered development by creating perverse incentives and hindering democratic governance. Thus it would appear that much of this money has been wasted, but whose fault has it been and what can be done to improve the situation in the coming decades? This paper analyze these aid issues and propose that the answer to these questions can be partially found by examining the European experience in proving assistance to its disadvantaged regions. Of particular importance in this regard has been the way aid has been used to promote economic integration and how it has been distributed using the subsidiary principle.
|Date of creation:||Jun 2008|
|Date of revision:|
|Publication status:||Published in United Nations ECE 2008 Annual Report|
|Contact details of provider:|| Postal: |
Phone: +4122 917 44 44
Fax: +4122 917 05 05
Web page: http://www.unece.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2001.
"On the Empirics of Foreign Aid and Growth,"
EPRU Working Paper Series
03-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Sep 2003.
- Raghuram G. Rajan, 2005.
"Aid and Growth: What Does The Cross-Country Evidence Really Show?,"
- Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
- Raghuram Rajan & Arvind Subramanian, 2005. "Aid and Growth; What Does the Cross-Country Evidence Really Show?," IMF Working Papers 05/127, International Monetary Fund.
- Raghuram G. Rajan & Arvind Subramanian, 2005. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," NBER Working Papers 11513, National Bureau of Economic Research, Inc.
- C-J. Dalgaard & H. Hansen, 2001. "On Aid, Growth and Good Policies," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 17-41.
- Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004.
"Counting chickens when they hatch: The short-term effect of aid on growth,"
- Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth," Working Papers 44, Center for Global Development.
- David Dollar & Craig Burnside, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
- R. Lensink & H. White, 2001. "Are There Negative Returns to Aid?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 42-65.
- Henrik Hansen & Finn Tarp, 2000.
"Aid effectiveness disputed,"
Journal of International Development,
John Wiley & Sons, Ltd., vol. 12(3), pages 375-398.
- Isham, Jonathan & Kaufmann, Daniel & Pritchett, Lant, 1995. "Governance and returns on investment : an empirical investigation," Policy Research Working Paper Series 1550, The World Bank.
- Levy, Victor, 1988. "Aid and growth in Sub-Saharan Africa: The recent experience," European Economic Review, Elsevier, vol. 32(9), pages 1777-1795, November.
When requesting a correction, please mention this item's handle: RePEc:ece:annrep:2008_3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Shelburne)The email address of this maintainer does not seem to be valid anymore. Please ask Robert Shelburne to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.