scholarly journals Foreign Aid Effectiveness and Development Strategies in Eritrea: A lesson for Sub-Saharan African countries

2016 ◽  
Vol 8 (5) ◽  
pp. 49-66
Author(s):  
Kibreab Habtom GebreMichael
2015 ◽  
Vol 42 (1) ◽  
pp. 47-63 ◽  
Author(s):  
Masoud Rashid Mohamed ◽  
Shivee Ranjanee Kaliappan ◽  
Normaz Wana Ismail ◽  
W.N.W Azman-Saini

Purpose – The purpose of this paper is to examine the effect of foreign aid on corruption in Sub-Saharan African (SSA) countries. Foreign aid is aimed to promote economic growth by complementing the recipient country’s shortfall of financial resource. However, if the recipient country’s quality of governance and institutions is poor, the process of growth will be undermined. Since foreign aid to SSA countries has been increasing substantially in recent years, it is imperative to explore its impact on the level of corruption in the SSA countries. Design/methodology/approach – The paper opted to use a Quantile regression (QR) approach to examine the impact of foreign aid on corruption. The data cover from the year 2000 to 2010 for 42 Sub-Saharan countries. QR is appropriate to achieve the stated objective because the method enables to examine the effect of aid on at different level of corruption. Findings – The paper provides empirical insights on the impact of foreign aid on corruption level in SSA countries. The finding indicates that foreign aid has reduction effect on the corruption level of SSA countries. The effect is likely to be greater in nations that experience a higher level of corruption. The findings further reveal that aid from different bilateral sources has different effect on corruption. As a whole, the findings are statistically significant and robust to alternative measure of corruption. Research limitations/implications – Since the study just focus on Sub-Saharan African countries, the research findings may lack generalization to the entire African countries or poor developing countries that are receiving substantial amount of foreign aid. Therefore, future research should incorporate all the African countries or all poor developing countries. Practical implications – Since the empirical findings reveals that aid reduces the corruption level and aid from different bilateral source have different effect on corruption, it is important to establish more cooperation between donor countries in allocating aid. The conditions attached to aid should be, among other things, be related with improvement of governance and institutional environment. Allocation of aid should be selective such that countries in institutional quality should be among the important criteria for a country to qualify for aid. Originality/value – This paper fulfills the need to study the relationship between foreign aid and corruption in the case of SSA countries. The aid-corruption nexus is relatively under explored issue especially in the case African countries.


Afrika Focus ◽  
2013 ◽  
Vol 26 (1) ◽  
Author(s):  
Sarah Delputte

This report presents the proceedings of the eld research conducted in the framework of a doctoral research on the European Union (EU) as an emerging coordinator in development cooperation. This research aims to seek in-depth and interpreted understanding of the paradox between the EU’s ambitions on the one hand and practice on the ground on the other by investigating the EU’s role in four sub-Saharan African countries (Tanzania, Zambia, Burkina Faso and Senegal). As such, it aims to add empirical evidence to the debate on the role of the EU as a development actor. More specifically, it investigates how the ambitions of the EU are translated at country level and in which situations the EU is more/less likely to act as a coordinator, making use of a pragmatist research approach. This approach is especially suited to problem-driven research that aims to understand a complex phenomenon. The article introduces the research question and the rationale, gives an overview of the research approach and the methodological considerations and ends with a summary of the research process and the preliminary findings of the eld research. Key words: EU development policy, aid effectiveness, coordination, pragmatism, interview research 


2001 ◽  
Vol 39 (3) ◽  
pp. 411-436 ◽  
Author(s):  
Arthur A. Goldsmith

African countries are among those receiving the most foreign aid per capita. Many detractors blame that aid for encouraging dictatorship and undermining democracy. This article takes a contrary view. It analyses the relationship between the amount of development assistance given to sub-Saharan countries in the 1990s, and changes in their political systems. There is empirical evidence that arbitrary, unrepresentative government diminished in Africa. The data also suggest a positive, though small, correlation between development assistance and democratisation in the 1990s. The issue now facing many African countries is how to consolidate and extend these reforms on their own, with less external support.


Author(s):  
Haley J. Swedlund

The Development Dance is about how donor countries and recipient governments negotiate the delivery of foreign aid. The book provides a conceptual framework for understanding donor-government relations and a theory for explaining the sustainability of aid delivery mechanisms. Drawing on extensive in-country fieldwork in four sub-Saharan African countries, as well as an original survey of development practitioners in twenty countries, the book points to a fundamental problem in the delivery of aid: the policy compromises reached by donor agencies and recipient governments are rarely politically sustainable. Commitment problems constrain the policy compromises reached by donors and recipients. As a result, fads and fashions dominate development cooperation, and the delivery of foreign aid is not determined by effectiveness alone. If we want to know whether an aid delivery mechanism is likely to be sustained over the long term, we need to look at whether it induces credible commitments from both donor agencies and recipient governments.


Author(s):  
Kaze Armel

Over the years, China has forged and mastered its own distinctive foreign aid practices as an emerging aid donor. China’s approach to foreign assistance has become highly appreciated as the country’s stature as a provider of economic assistance has matured. In 2013, under President Xi Jinping, Beijing introduced the Belt and Road Initiative, which has become a leading component of China’s foreign policy and triggered a new round of policy reform in its foreign aid agenda. In Africa, China’s foreign assistance has kept in line with the policy of equal treatment. It has shared its development experience, helped many African countries to transition from “poor” to “developing”, from “aid recipients” to “wealth creators,” and many African countries are thus turning their interests from the West to the East. Certainly, the European Union as a traditional aid donor, remains the largest aid distributor in the world, especially in Africa. In other words, the EU’s foreign assistance has become an indispensable source of funding for many African countries. However, foreign aid effectiveness remains low on the African continent because of the absence of native African policymakers in aid programs designed and implemented by Beijing and Brussels. Some critics argue that Chinese and European assistance to Africa is not bringing about the best results as expected. This article argues that a new international architecture of foreign assistance through trilateral cooperation is needed to increase Chinese and European aid effectiveness in Africa. Trilateral cooperation will not only increase foreign assistance efficiency in Africa, but also give a chance to African countries to strengthen their own development capacity through assistance and guidance, reduce Africa’s aid dependence, and hopefully guarantee a smooth “graduation” of African countries from official development assistance.


2009 ◽  
Vol 10 (1) ◽  
pp. 29-52
Author(s):  
Kelechi A. Kalu ◽  
Jiyoung Kim

This paper examines the political economy of development assistance in sub-Saharan African countries and South Korea focusing on the importance of good governance and domestic policies in a successful management and utilization of development aid. South Korea, along with Malaysia, has been widely recognized as one of the successful cases where foreign aid actually led to a significant level of economic development. From one of the major recipient nations and the poorest countries, South Korea, in about 40 years, has emerged as a donor nation with the 12th largest economy in the world. Comparatively, despite international efforts to help Africans out of their economic and political malaise, there has been a lack of visible progress in sub-Saharan African nations as far as changing the lives of the people. In the paper, we argue that weak institutional and political structures dominated by autocrats and democrats that practice illiberal politics are the main cause of poor development policies in sub-Saharan Africa. lt is weak institutional structures that continue to undermine the efficient use of foreign aid in the interest of the people. In this context, we examine political factors that contributed to a successful management of development aid in South Korea, and extract some lessons and policy suggestions from the South Korean case for sub-Saharan African countries.


Author(s):  
Felix Dabit Atabukum ◽  
Nembot Ndeffo Luc ◽  
Christophe Kuipou Toukam

This paper sets out to investigate the effects of agricultural expenditures on two dimensions of food security in Sub Saharan Africa from 2000-2016. The Feasible Generalized Least Square (FGLS) econometric technique was applied on data from World Development Indicator, Regional Strategic Alliance and Knowledge Support System (ReSAKSS), the World Governing Indicator, the African Development Indicators, the Food and Agricultural Organisation (FAO) data bases. Our results depicted that public agricultural expenditure has negative and significant effects on food availability and utilization while domestic private agricultural expenditure and human capital foster both dimensions of food security. Foreign aid for agriculture has no effects on food availability but promotes food utilization while economic infrastructure promotes food availability but the effects on food utilization are positive and not significant. On the basis of the results, we recommend that SSA African government should increase the size of public agricultural expenditure, increase the level of economic infrastructures so as to crowd in private agricultural investment, lobby for more foreign aid for agriculture, improve the quality of institutions and design different policies to target different dimensions of food security.


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