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Aid Effectiveness in Times of Political Change: Lessons from the Post-Communist Transition

Anders Olofsgård, Maria Perrotta () and Emmanuel Frot ()
Additional contact information
Maria Perrotta: Stockholm Institute of Transition Economics, Postal: Stockholm Institute of Transition Economics, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden, http://www.hhs.se/se/Search/Person/Pages/Person.aspx?PersonID=2553

Authors registered in the RePEc Author Service: Maria Perrotta Berlin ()

No 25, SITE Working Paper Series from Stockholm School of Economics, Stockholm Institute of Transition Economics

Abstract: We argue that the tilt towards donor interests over recipient needs in aid allocation and practices may be particularly strong in new partnerships. Using the natural experiment of Eastern transition we find that commercial and strategic concerns influenced both aid flows and entry in the first half of the 1990s, but much less so later on. We also find that fractionalization increased and that early aid to the region was particularly volatile, unpredictable and tied. Our results may explain why aid to Iraq and Afghanistan has had little development impact and serve as warning for Burma and Arab Spring regimes.

Keywords: foreign aid; development (search for similar items in EconPapers)
JEL-codes: F35 F63 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2013-10-22
New Economics Papers: this item is included in nep-dev, nep-pol and nep-tra
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Journal Article: Aid Effectiveness in Times of Political Change: Lessons from the Post-Communist Transition (2014) Downloads
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