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Aid effectiveness: Human rights as a conditionality measure

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  • Douch, Mustapha
  • Edwards, Huw
  • Landman, Todd
  • Mallick, Sushanta

Abstract

The ‘aid conditionality’ hypothesis as documented in the literature suggests that aid is effective in augmenting growth only in the presence of a sound policy environment. This hypothesis was so influential that its policy recommendation, to provide aid conditional upon recipient domestic policies, is currently the dominant ODA allocation criterion. However non-economic dimensions of development (political and institutional) are increasingly seen as fundamental. For this reason, this paper focuses on the linkage between aid and a non-economic factor like Human Rights (reflecting repression and corruption) as a measure of aid effectiveness, in explaining growth outcomes across 42 Least Developed economies. We find that countries with better protection of human rights experience positive growth from aid receipts, signifying the role of stronger institutions in enabling more effective use of aid. The paper thus concludes that the measurement and monitoring of human rights provision is a useful tool in gauging the likely effectiveness of foreign aid.

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  • Douch, Mustapha & Edwards, Huw & Landman, Todd & Mallick, Sushanta, 2022. "Aid effectiveness: Human rights as a conditionality measure," World Development, Elsevier, vol. 158(C).
    • Handle: RePEc:eee:wdevel:v:158:y:2022:i:c:s0305750x22001681
    DOI: 10.1016/j.worlddev.2022.105978
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    More about this item

    Keywords

    Human rights; aid effectiveness; Corruption; Oligarchy;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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