What is behind foreign aid ineffectiveness?

Mohamed Sraieb

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: Despite the highly significant flows involved, development aid has turned out to be ineffective in a large number of recipient countries. This paper2 explores the reasons behind aid failure. It starts from an investigation of donors' motivations for aid allocation and examines their potential implications on aid policies. The main findings are that aid seems to be heavily impacted by inertia. Along with self-interest, this may explain the time-inconsistency problem facing aid donors. Next, the paper examines strategies toward mitigating such a time-inconsistency, including reputation signaling and changing aid modalities. This provides guidance on how aid should be optimally allocated among recipient countries.

Keywords: Aid modalities; Development aid; Dynamic panel; Effectiveness; Inertia; Targeted infrastructure (search for similar items in EconPapers)
Date: 2016-06
Note: SCOPUS: ar.j
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published in: Reflets et perspectives de la vie économique (2016) v.55 n° 2,p.61-73

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: What is Behind Foreign Aid Ineffectiveness? (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/236299

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/236299

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().