Aid and Rent-Driven Growth: Mauritania, Kenya and Mozambique Compared

Richard M. Auty

No RP2007-35, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper conceptualises foreign aid as a geopolitical form of rent in order to help distinguish the conditions under which aid is detrimental to sustained economic recovery from those where it is beneficial. Foreign aid shares with natural resource rent and contrived (i.e., government monopoly) rent the property of being a large revenue stream that is detached from the economic activity that generates it, and elicits political contests for its capture.

Keywords: Economic assistance and foreign aid; Economic development; Government accountability (search for similar items in EconPapers)
Date: 2007
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