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Notes on the Grants Economy of Foreign Aid

Author

Listed:
  • Bruce D. Fitzgerald

    (Peace Science Department University of Pennsylvania)

Abstract

A donor may use the inducement of grants to alter the manner in which recipients' lives are lived. A general model of a discriminating donor allocating grants among a number of potential recipients is derived and used to find the behavioral implications of the foreign aid objective of minimizing arms expenditures in developing nations. It is shown that a nation will receive greater sums of aid: (a) the more compliant it is to the tastes of the donor, (b) the more restrictive the terms of the grant, and (c) the lower its income level.

Suggested Citation

  • Bruce D. Fitzgerald, 1975. "Notes on the Grants Economy of Foreign Aid," Conflict Management and Peace Science, Peace Science Society (International), vol. 1(2), pages 131-140, February.
    • Handle: RePEc:sae:compsc:v:1:y:1975:i:2:p:131-140
    DOI: 10.1177/073889427500100204
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    References listed on IDEAS

    as
    1. Bruno S. Frey, 1975. "A Roundtable on Foreign Aid Weapon Exports and Aid to Developing Countries," Conflict Management and Peace Science, Peace Science Society (International), vol. 1(2), pages 117-126, February.
    2. Mark V. Pauly, 1970. "Efficiency In The Provision Of Consumption Subsidies," Kyklos, Wiley Blackwell, vol. 23(1), pages 33-57, February.
    3. Kenneth E. Boulding, 1973. "Love, Fear and the Economist," Challenge, Taylor & Francis Journals, vol. 16(3), pages 32-39, July.
    Full references (including those not matched with items on IDEAS)

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