scholarly journals Incentives for Conditional Aid Effectiveness

2014 ◽  
Vol 5 (1) ◽  
Author(s):  
Francisco Candel-Sánchez
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
Donor Country ◽  
Aid Effectiveness ◽  
Time Inconsistency ◽  
Structural Reforms ◽  
Aid Programs ◽  
The Cost ◽  
Recipient Government ◽  
Privately Owned

AbstractCan sanctions against foreign aid donors enhance the credibility of conditional aid policies? If such policies suffer from time inconsistency, the answer is positive. This paper proposes a mechanism to overcome the lack of credibility of conditional aid donations to developing countries. A scheme of policy-dependent transfers to the donor country is shown to achieve an optimal commitment outcome by improving the credibility of conditional aid programs. The scheme is devised to cover situations in which the cost of structural reforms is information privately owned by the recipient government.

Israel's Military Aid to Africa, 1960–66

1971 ◽  
Vol 9 (2) ◽  
pp. 165-187 ◽  
Author(s):  
Abel Jacob
Keyword(s):  
Foreign Aid ◽  
Donor Country ◽  
Political Influence ◽  
Cultural Barriers ◽  
The Political ◽  
Military Assistance ◽  
Military Aid ◽  
The Social ◽  
Recipient Government ◽  
The Military

DURING the late 1950S and early 19605, Israel mounted an active campaign of aid to Africa, which took three main forms: technical help in agriculture, joint commercial ventures, and military assistance. Of the three, the military and quasi-military programmes made the most considerable mark in Africa;1 they were also an important part of Israel's overall foreign policy, in an attempt to gain political influence through military aid, and thus to help overcome her isolation in the Middle East. Israel's military assistance to Africa illustrates several important aspects of foreign aid. This article deals mainly with the political motives of the donor country, and the various ways in which it may be concerned to influence the actions of the recipient government. Later, there is some discussion of the social and cultural barriers to the transfer of military and para-military organisations from one culture to another.

Foreign Aid and the State

Give and Take ◽  
2019 ◽  
pp. 213-228
Author(s):  
Nitsan Chorev
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Direct Investment ◽  
State Capacity ◽  
Aid Effectiveness ◽  
The State ◽  
Local Institutions ◽  
Industrial Sectors ◽  
Provision Of Services ◽  
Aid Programs

This concluding chapter summarizes the book’s main arguments regarding developmental foreign aid in the pharmaceutical field and suggests that similar conclusions apply to other industrial sectors, as well as to other (nonindustrial) sectors of interest to foreign aid, including the provision of services and the distribution of essential commodities. It also identifies a number of contradictions and tensions inherent to developmental foreign aid, including in regard to its effects on the state. First, given that the cases examined in the book confirm the importance of state capacity for foreign aid effectiveness, the chapter takes on the highly contested question of whether foreign aid could contribute to state capacity-building. Second, given the difficulties in increasing state capacity, maybe aid programs could simply bypass the state? The chapter then explains why even developmental foreign aid should not—but also cannot—replace the state. The type of foreign aid that is likely to be effective is not parachuting aid that evades local institutions and actors but, rather, foreign aid that relies on the institutions and actors in place. Finally, the chapter considers the recent wave of foreign direct investment (FDI) in the pharmaceutical sector in East Africa.

Environmental shocks, civil conflict and aid effectiveness

2021 ◽  
pp. 073889422110152
Author(s):  
Seok Joon Kim
Keyword(s):  
Developing Countries ◽  
Longitudinal Data ◽  
Natural Disasters ◽  
Foreign Aid ◽  
Civil Conflict ◽  
Aid Effectiveness ◽  
Civil Conflicts ◽  
Marginalized Groups ◽  
Environmental Shocks

Do natural disasters promote conflict or peace? A series of analyses of longitudinal data between 1971 and 2011 shows the modest but significant impact of natural disasters on the likelihood of conflict, conditional on the level of foreign aid in developing countries. This paper argues that frequent natural disasters, through the legitimacy effect and monitoring effect, allow foreign aid to be channeled to marginalized groups and used for its intended development purpose, eventually lowering the likelihood of conflict. This study is the first to incorporate an examination of foreign aid into an analysis of natural disasters and civil conflicts.

scholarly journals Aid Effectiveness in Fragile States

2021 ◽  
pp. 493-520
Author(s):  
Francesca G. Caselli ◽  
Andrea F. Presbitero
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
Developing Country ◽  
Social Performance ◽  
Aid Effectiveness ◽  
Fragile States ◽  
Success Rates ◽  
Fragile State ◽  
Percentage Points ◽  
Level Data

Fragile states are highly dependent on foreign aid and are characterized by several features that impair their economic and social performance. This chapter reviews the literature on aid effectiveness and presents several stylized facts on aid flows to fragile states and exploits project-level data to provide evidence on aid effectiveness in fragile states. Comparing project success rates across fragile and other developing countries confirms that aid given to fragile states is less likely to be effective than elsewhere. Our results indicate that a project implemented in a fragile state is about 8 percentage points less likely to be successful than a similar project financed in another developing country. Our analysis does not imply that aid to fragile states should be reduced across the board, but points to several factors that could hamper the growth dividend of aid.

Foreign Aid and Soviet Postwar Recovery

1985 ◽  
Vol 45 (4) ◽  
pp. 947-954 ◽  
Author(s):  
Susan J. Linz
Keyword(s):  
World War Ii ◽  
Soviet Union ◽  
Foreign Aid ◽  
Economic Consequences ◽  
Postwar Period ◽  
World War ◽  
The Soviet Union ◽  
Economic Aid ◽  
Aid Programs ◽  
The Cost

This paper examines the economic consequences to the Soviet Union of not participating in proposed aid programs in the immediate postwar period. The cost of World War II to the Soviet Union is compared with the value of economic aid received in the postwar period and with aid potentially available. The traditional story—which suggests that had the USSR received some combination of the proposed aid prgorams, in lieu of reparations, the postwar impact would have been significantly reduced—is rejected.

The Rise of Asian Aid Donors: Recipient-to-Donor Transition and Implications for International Aid Regime

2021 ◽  
Vol 13 (1) ◽  
pp. 58-80
Author(s):  
David Dole ◽  
Steven Lewis-Workman ◽  
Dennis D. Trinidad ◽  
Xianbin Yao
Keyword(s):  
Foreign Aid ◽  
Historical Perspective ◽  
International Aid ◽  
Economic Cooperation ◽  
Aid Effectiveness ◽  
Development Cooperation ◽  
New Approaches ◽  
Emerging Donors ◽  
Aid Programs ◽  
Over Time

The aims of this article are twofold. First, from a historical perspective, it examines the recipient-to-donor transition of five Asian aid donors, namely Japan, Korea, China, India, and Thailand. Specifically, it examines the evolution of their foreign aid programs and practices. Second, it analyzes the effects of Asian aid donors on the international aid regime. We argue that the mix of economic and security goals, which motivated Asian donors to develop their initial economic cooperation programs, have persisted over time. This explains why Asian aid donors have allotted a disproportionate share of their assistance to neighboring countries and their use of foreign aid as a key tool of their commercial and diplomatic policies. Moreover, we contend that the rise and experience of Asian aid donors have created a new dynamic to donor–recipient partnerships and development cooperation like new approaches and modalities. Key findings of this study add to the growing literature on emerging donors and aid effectiveness debate.

Foreign Aid Reciprocity Agreements: Committing Developing Countries to Improve the Effectiveness of Aid When They Become Donors

2017 ◽  
Vol 10 (2) ◽  
Author(s):  
Martin Skladany
Keyword(s):  
Developing Countries ◽  
Best Practices ◽  
Foreign Aid ◽  
International Development ◽  
Political Development ◽  
Developed Countries ◽  
Security Technology ◽  
The Future ◽  
International Interaction ◽  
Aid Programs

AbstractExisting best practices for aid delivery are well known and largely uncontroversial but often neglected by bilateral and multilateral aid agencies because of domestic political considerations and bureaucratic resistance. Developing countries should unilaterally ratify an agreement committing them, in the future, after they have experienced sustained and robust economic, social, and political development, to establish their own foreign aid programs that follow existing best practices for aid delivery. Such foreign aid reciprocity agreements would have numerous benefits, including: being an international tool to signal a developing country’s resolve to reform and a domestic tool to pressure corrupt public officials to improve; enabling developing countries to take a leadership position in international development discourses; putting pressure on developed countries to implement best practices; and encouraging other developing countries to support and eventually adopt aid reciprocity agreements, which would lead to an increase in the amount of aid in the future. Furthermore, the idea of unilateral reciprocity agreements could potentially be expanded to areas of international interaction beyond foreign aid such as finance, trade, security, technology transfer, migration, and environmental policies.

scholarly journals Does Political Instability in Developing Countries Attract More Foreign Aid?

2015 ◽  
Vol 8 (1) ◽  
pp. 208 ◽  
Author(s):  
Mahjabeen Mamoon
Keyword(s):  
Developing Countries ◽  
Foreign Aid ◽  
Random Effect ◽  
Negative Relationship ◽  
Aid Effectiveness ◽  
Internal Conflict ◽  
Law And Order ◽  
Aid Allocation ◽  
Socioeconomic Condition ◽  
Government Stability

<p>While foreign aid has many determinants, an important factor influencing aid allocation is the political risk prevailing in the aid receiving country. This paper uses panel approach to investigate empirically how different political instabilities in the aid receiving country influence aid allocation by donors. The paper specifies and estimates models using fixed effect and random effect approach that explain the allocation of net per capita ODA among 50 developing countries over the period 1990-2012. Out of the total eight risk indices used, five exerts a significant impact on aid allocation of which four are indicators of governance while the fifth is an indicator of internal conflict. Based on the models, there is a negative relationship between corruption and aid flow indicating donors’ intolerance for malfeasance. However, the significantly positive association between aid flow and other three governance indicators- government stability, law and order and bureaucratic quality is questionable. While addressing the concept of governance in the development agenda reflects donors’ increasing concern for aid effectiveness, the rise in aid inflow with the worsening of government stability, law and order and bureaucratic quality leads to one critical question- Are donors aiding bad governance? Based on the positive significance of poor governance and the insignificance of the socioeconomic condition on aid flow, the paper argues that donors are motivated by self-interest rather than altruistic nature.</p>

scholarly journals Aid Allocation and Targeted Development in an Increasingly Connected World

2017 ◽  
Vol 71 (4) ◽  
pp. 735-766 ◽  
Author(s):  
Sarah Blodgett Bermeo
Keyword(s):  
Developing Countries ◽  
Cold War ◽  
Empirical Analysis ◽  
Aid Effectiveness ◽  
Aid Allocation ◽  
Government Capacity ◽  
The Cold War ◽  
Recipient Government ◽  
Economic Ties

AbstractAid donors pursue a strategy of targeted development with regard to recipient states. The determinants of aid allocation have shifted significantly. Industrialized states are increasingly unable to insulate themselves from spillovers caused by underdevelopment abroad. Donors attempt to use aid to decrease these spillovers, targeting developing countries where the effects on the donor are anticipated to be large. Once a recipient is chosen, concern for recipient government capacity guides the composition of aid. Empirical analysis of aid allocation from 1973 to 2012 demonstrates that, while explanations based on security and economic ties to the donor explain allocation well in the Cold War, the post-2001 period is best understood by incorporating a role for targeted development. This framework helps synthesize various findings in the aid allocation literature and has important implications for studying aid effectiveness.

scholarly journals Lack of foreign aid effectiveness in developing countries between a hammer and an anvil

2016 ◽  
Vol 9 (1) ◽  
pp. 82-99 ◽  
Author(s):  
Moosa Elayah
Keyword(s):  
Developing Countries ◽  
Public Choice ◽  
Foreign Aid ◽  
Public Interest ◽  
Aid Effectiveness ◽  
Vicious Circle ◽  
Institutional Environments ◽  
The Public ◽  
Self Interest ◽  
Public Choice Perspective

This article examines reasons for the ineffectiveness of foreign aid interventions in developing countries, using the examples of Yemen, Egypt and Jordan. It starts with a review of two contradictory theories used to explain foreign aid ineffectiveness: the public interest perspective (PIP) and the public choice perspective (PCP). On the basis of the PCP, this article shows that deficiencies are locked within a vicious circle of a poor policy and institutional environments in developing countries and donors' self-interest. The article ends by proposing a third explanation of foreign aid ineffectiveness that goes beyond the scope of the PCP.

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