Aid and Conditionality
Jonathan Temple ()
Chapter Chapter 67 in Handbook of Development Economics, 2010, vol. 5, pp 4415-4523 from Elsevier
This chapter examines the conditions under which foreign aid will be effective in raising growth, reducing poverty, and meeting basic needs in areas such as education and health. The primary aim is not to draw policy conclusions, but to highlight the main questions that arise, the contributions of the academic literature in addressing them, and the areas where much remains unknown. After describing some key concepts and trends in aid, the chapter examines the circumstances under which aid might transform productivity, and when it can achieve things that private capital flows cannot. The chapter reviews the relevant theory and evidence. Next, it turns to some of the other considerations that might form part of a structural model linking outcomes to aid. These include Dutch Disease effects, the fiscal response to aid, and the important connections between aid and governance, both positive and negative.
Keywords: foreign aid; conditionality; governance (search for similar items in EconPapers)
JEL-codes: F35 O10 O40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (59) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:devchp:v:5:y:2010:i:c:p:4415-4523
Access Statistics for this chapter
More chapters in Handbook of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().