Recipient Governments' Willingness and Ability to Meet Aid Conditionality: The Effectiveness of Aid Finance and Conditions

Oliver Morrissey

No DP2002-105, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper evaluates aid both by considering the evidence on aid effectiveness in promoting growth and by considering how effective has aid been in exerting leverage on policy choices. We argue that in both respects aid has had beneficial effects. It is rather easy to demonstrate that if a country is unwilling to implement policy reforms, attaching conditions to aid will not ensure sustained reform. In this sense conditionality does not work. This ignores the fact that donors, through aid and conditions, can influence recipient policies.

Keywords: Contracts; Economic assistance and foreign aid; Economic development (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (2)

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