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Aid And Development In Africa: The Debate, The Challenges And The Way Forward

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  • Elsabé Loots

Abstract

The article discusses the emerging literature and debates on aid, within the context of expected increases in aid flows to the continent. The trends in ODA flows indicate a reversal in aid flows to the continent since 2000, with subsequent increases in aid intensity and dependence. Although the more recent literature on aid is doubtful if aid only spurs growth in a in a good policy environment, the aid‐institutional debate indicates a clear aid‐institutional paradox, especially relating to the macroeconomic effects, the fiscal response, the absorptive capacity and the good governance aid debates. The literature further indicates that aid could serve as a barrier to vulnerable societies. From the donors' perspective, it is evident that quantity of aid does not imply quality and that the ultimate responsibility lies with recipient governments to ensure more efficient absorption of aid.

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  • Elsabé Loots, 2006. "Aid And Development In Africa: The Debate, The Challenges And The Way Forward," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 363-381, September.
    • Handle: RePEc:bla:sajeco:v:74:y:2006:i:3:p:363-381
    DOI: 10.1111/j.1813-6982.2006.00076.x
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    1. Hausman, William J. & Neufeld, John L. & Schreiber, Till, 2014. "Multilateral and bilateral aid policies and trends in the allocation of electrification aid, 1970–2001," Utilities Policy, Elsevier, vol. 29(C), pages 54-62.
    2. Robert Stojanov & Wadim Strielkowski, 2013. "The Role of Remittances as More Efficient Tool of Development Aid in Developing Countries," Prague Economic Papers, Prague University of Economics and Business, vol. 2013(4), pages 487-503.
    3. Robert Stojanov & Daniel Němec & Libor Žídek, 2019. "Evaluation of the Long-Term Stability and Impact of Remittances and Development Aid on Sustainable Economic Growth in Developing Countries," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    4. Knedlik, Tobias & Kronthaler, Franz, 2006. "Forced to Freedom? Empirical Relations between Aid and Economic Freedom," IWH Discussion Papers 8/2006, Halle Institute for Economic Research (IWH).

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