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Aid and Policy Preference in Oil-Rich Countries: Comparing Indonesia and Nigeria

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  • Ahmad Helmy Fuady

Abstract

This paper analyses the role of foreign aid to assist development in two oil-rich countries: Indonesia and Nigeria. This paper seeks to understand the way foreign aid provided assistance to transform Indonesia from a 'fragile' state in the 1960s into one of the 'Asian Tigers' in the mid-1990s, and why it did not prevent Nigeria from falling into 'African Tragedy'. This paper argues that foreign aid could help not only to finance development, but also to navigate policy makers' policy choices.

Suggested Citation

  • Ahmad Helmy Fuady, 2014. "Aid and Policy Preference in Oil-Rich Countries: Comparing Indonesia and Nigeria," WIDER Working Paper Series wp-2014-023, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2014-023
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2014-023.pdf
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    References listed on IDEAS

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    1. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    2. David Henley & Riwanto Tirtosudarmo & Ahmad Helmy Fuady, 2012. "Flawed Vision: Nigerian Development Policy in the Indonesian Mirror, 1965–90," Development Policy Review, Overseas Development Institute, vol. 30, pages 49-71, February.
    3. Scherr, Sara J., 1989. "Agriculture in an export boom economy: A comparative analysis of policy and performance in Indonesia, Mexico and Nigeria," World Development, Elsevier, vol. 17(4), pages 543-560, April.
    4. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 11855, April.
    5. Bevan, David & Collier, Paul & Gunning, Jan Willem, 1999. "The Political Economy of Poverty, Equity, and Growth: Nigeria and Indonesia," OUP Catalogue, Oxford University Press, number 9780195209860.
    6. Anis Chowdhury & Iman Sugema, 2005. "How Significant and Effective has Foreign Aid to Indonesia been?," Centre for International Economic Studies Working Papers 2005-05, University of Adelaide, Centre for International Economic Studies.
    7. Pinto, Brian, 1987. "Nigeria during and after the Oil Boom: A Policy Comparison with Indonesia," The World Bank Economic Review, World Bank, vol. 1(3), pages 419-445, May.
    8. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, April.
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