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Dollars, dialogue and development: an evaluation of Swedish program aid


  • Howard White

    (Institute of Development Studies)


How does aid affect recipient country economic performance? This study looks at programme aid (import support, budget support and debt relief) in nine countries (Bangladesh, Cape Verde, Ghana, Mozambique, Nicaragua, Tanzania, Uganda, Vietnam and Zambia), showing how aid has had an impact on both policy outcomes and macroeconomic aggregates such as investment and imports. The study is one of the few to look at how bilateral donors engage in policy conditionality, and the channels through which bilaterals seek to influence the policy of recipients. It also shows a way to analyse macroeconomic impact without resorting to flawed cross- country growth regressions.

Suggested Citation

  • Howard White, 2005. "Dollars, dialogue and development: an evaluation of Swedish program aid," Development and Comp Systems 0511012, EconWPA.
  • Handle: RePEc:wpa:wuwpdc:0511012
    Note: Type of Document - pdf; pages: 200

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    References listed on IDEAS

    1. Mosley, Paul & Subasat, Turan & Weeks, John, 1995. "Assessing adjustment in Africa," World Development, Elsevier, vol. 23(9), pages 1459-1473, September.
    2. White, Howard, 1994. "Foreign aid, taxes and public investment: A further comment," Journal of Development Economics, Elsevier, vol. 45(1), pages 155-163, October.
    3. Aron, Janine & Elbadawi, Ibrahim A., 1992. "Parallel markets, the foreign exchange auction, and exchange rate unification in Zambia," Policy Research Working Paper Series 909, The World Bank.
    4. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
    5. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
    6. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398, April.
    7. Morris Goldstein & Peter Montiel, 1986. "Evaluating Fund Stabilization Programs with Multicountry Data: Some Methodological Pitfalls (Evaluation des programmes de stabilisation du Fonds à partir de données sur divers pays: quelques écueils," IMF Staff Papers, Palgrave Macmillan, vol. 33(2), pages 304-344, June.
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    Cited by:

    1. David Booth, 2003. "Patterns of difference and practical theory: researching the new poverty strategy processes in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(7), pages 863-877.
    2. Li, Ying & Rowe, Francis, 2007. "Aid inflows and the real effective exchange rate in Tanzania," Policy Research Working Paper Series 4456, The World Bank.
    3. Howard White, 2001. "Will the new aid agenda help promote poverty reduction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(7), pages 1057-1070.

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    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Economic Systems

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