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Foreign aid effectiveness

In: Handbook of Globalisation and Development

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  • Mina Baliamoune-Lutz

Abstract

Foreign aid effectiveness is an area that is replete with controversy. This to a large extent is due to the mixed findings on the effects of aid that have been documented in the literature. This chapter provides a critical review of the literature on aid effectiveness, highlights the main factors that have been found to influence the impacts of aid, and synthesises the findings from a large number of relevant studies. The chapter reports that many scholars have documented the positive effects of aid but that a large number of other studies have shown that aid can have a negative impact on growth, institutions, democratization and governance. Overall, the existing evidence seems to point to the importance of narrowing the focus when studying the impact of aid by decomposing aid into its various categories while perhaps widening the focus when studying the factors that influence aid effectiveness.

Suggested Citation

  • Mina Baliamoune-Lutz, 2017. "Foreign aid effectiveness," Chapters, in: Kenneth A. Reinert (ed.), Handbook of Globalisation and Development, chapter 21, pages 373-391, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:15966_21
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