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Aid and Rent-Driven Growth: Mauritania, Kenya and Mozambique Compared

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  • Richard M. Auty

Abstract

This paper conceptualises foreign aid as a geopolitical form of rent in order to help distinguish the conditions under which aid is detrimental to sustained economic recovery from those where it is beneficial. Foreign aid shares with natural resource rent and contrived (i.e., government monopoly) rent the property of being a large revenue stream that is detached from the economic activity that generates it, and elicits political contests for its capture.

Suggested Citation

  • Richard M. Auty, 2007. "Aid and Rent-Driven Growth: Mauritania, Kenya and Mozambique Compared," WIDER Working Paper Series RP2007-35, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2007-35
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2007-35.pdf
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    Cited by:

    1. Knack, Stephen, 2009. "Sovereign rents and quality of tax policy and administration," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 359-371, September.
    2. Xin Liu & Yongzheng Liu, 2021. "Land lease revenue windfalls and local tax policy in China," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(2), pages 405-433, April.

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