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Recipient Governments' Willingness and Ability to Meet Aid Conditionality: The Effectiveness of Aid Finance and Conditions

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  • Oliver Morrissey

Abstract

This paper evaluates aid both by considering the evidence on aid effectiveness in promoting growth and by considering how effective has aid been in exerting leverage on policy choices. We argue that in both respects aid has had beneficial effects. It is rather easy to demonstrate that if a country is unwilling to implement policy reforms, attaching conditions to aid will not ensure sustained reform. In this sense conditionality does not work. This ignores the fact that donors, through aid and conditions, can influence recipient policies.

Suggested Citation

  • Oliver Morrissey, 2002. "Recipient Governments' Willingness and Ability to Meet Aid Conditionality: The Effectiveness of Aid Finance and Conditions," WIDER Working Paper Series DP2002-105, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-105
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2002-105.pdf
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    References listed on IDEAS

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    1. Anke Hoeffler, 2001. "Openness, Investment and Growth," Journal of African Economies, Centre for the Study of African Economies, vol. 10(4), pages 470-497.
    2. Robert Lensink & Oliver Morrissey, 2000. "Aid instability as a measure of uncertainty and the positive impact of aid on growth," Journal of Development Studies, Taylor & Francis Journals, vol. 36(3), pages 31-49.
    3. Lensink, Robert & Morrissey, Oliver, 2002. "The volatility of FDI, not the level, affects growth in developing countries," CDS Research Reports 200213, University of Groningen, Centre for Development Studies (CDS).
    4. Noorbakhsh, Farhad & Paloni, Alberto, 2001. "Structural Adjustment and Growth in Sub-Saharan Africa: The Importance of Complying with Conditionality," Economic Development and Cultural Change, University of Chicago Press, vol. 49(3), pages 479-509, April.
    5. David Greenaway & Oliver Morrissey, 1996. "Multilateral Institutions and Unilateral Trade Liberalisation in Developing Countries," Palgrave Macmillan Books, in: V. N. Balasubramanyam & D. Greenaway (ed.), Trade and Development, chapter 8, pages 135-160, Palgrave Macmillan.
    6. Joseph P. Joyce, 2001. "Time present and time past: a duration analysis of IMF program spells," Working Papers 01-2, Federal Reserve Bank of Boston.
    7. Dreher, Axel, 2002. "The development and implementation of IMF and World Bank conditionality," HWWA Discussion Papers 165, Hamburg Institute of International Economics (HWWA).
    8. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    9. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages 191-216, June.
    10. Chris Milner & Oliver Morrissey,, "undated". "Measuring Trade Liberalisation in Africa," Discussion Papers 97/3, University of Nottingham, CREDIT.
    11. repec:dgr:rugcds:200213 is not listed on IDEAS
    12. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
    13. Karuna Gomanee & Sourafel Girma & Oliver Morrissey, 2005. "Aid and growth in Sub-Saharan Africa: accounting for transmission mechanisms," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 1055-1075.
    14. Hausken, Kjell & Plümper, Thomas & Schneider, Gerald, 2002. "The Trilemma of the Protectionist Autocrat: An Assessment of the Political Determinants of Foreign Economic Liberalization," MPRA Paper 75866, University Library of Munich, Germany.
    15. Howard White & Oliver Morrissey, 1997. "Conditionality When Donor And Recipient Preferences Vary," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 497-505.
    16. Syed Mansoob Murshed & Kunibert Raffer (ed.), 1994. "Trade, Transfers And Development," Books, Edward Elgar Publishing, number 329.
    17. Greenaway, David & Morrissey, Oliver, 1993. "Structural Adjustment and Liberalisation in Developing Countries: What Lessons Have We Learned?," Kyklos, Wiley Blackwell, vol. 46(2), pages 241-261.
    18. Mark McGillivray & Oliver Morrissey, 2000. "Aid fungibility in Assessing Aid: red herring or true concern?," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 413-428, April.
    19. Dean, J.M. & Desai, S. & Riedel, J., 1994. "Trade Policy Reform in Developing Countries since 1985," World Bank - Discussion Papers 267, World Bank.
    20. Jennifer Mbabazi & Oliver Morrissey & Chris Milner, 2001. "Are Inequality and Trade Liberalization Influences on Growth and Poverty?," WIDER Working Paper Series DP2001-132, World Institute for Development Economic Research (UNU-WIDER).
    21. David Greenaway & Oliver Morrissey, 1993. "Structural Adjustment and Liberalisation in Developing Countries: What Lessons Have We Learned?," Kyklos, Wiley Blackwell, vol. 46(2), pages 241-261, May.
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    Cited by:

    1. Rami Abdelkafi & Hatem Derbel & Ali Chkir, 2009. "Libéralisme Économique et Croissance: Le Cas de Six Pays Méditerranéens," EconomiX Working Papers 2009-35, University of Paris Nanterre, EconomiX.
    2. Rami Abdelkafi & Hatem Derbel, 2008. "Une décomposition de l'effet de la liberté économique sur la croissance dans les pays en développement," EconomiX Working Papers 2008-19, University of Paris Nanterre, EconomiX.

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