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Toward the Enhanced Effectiveness of Foreign Aid

Author

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  • Gustav Ranis

    (Economic Growth Center, Yale University)

Abstract

At the very time that professional skepticism concerning the effectiveness of foreign aid has reached new heights, donors seem to be ready to substantially increase the volume of aid they are willing to make available. This paper attempts to address this paradox by first examining the record of aid in the past, distinguishing between cross-country regressions and select country experience. It subsequently proceeds to propose the establishment of a new modus operandi for foreign aid, based on a much more passive, bankerlike posture by donors, leavin the initiative for defining what reforms are feasible, plus the establishment of self-conditionality, to third world recipients before they approach the international community of donors.

Suggested Citation

  • Gustav Ranis, 2006. "Toward the Enhanced Effectiveness of Foreign Aid," Working Papers 938, Economic Growth Center, Yale University.
    • Handle: RePEc:egc:wpaper:938
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp938.pdf
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    Cited by:

    1. Bigsten, Arne, 2006. "Aid and Economic Development in Africa," Working Papers in Economics 237, University of Gothenburg, Department of Economics.
    2. Wako, Hassen, 2016. "Aid, institutions and economic growth: Heterogeneous parameters and heterogeneous donors," MERIT Working Papers 2016-009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Quibria, M.G., 2014. "Aid effectiveness: research, policy and unresolved issues," MPRA Paper 86215, University Library of Munich, Germany, revised 2014.
    4. Gustav Ranis & Stephen Kosack, 2009. "Capital Flows For Development From Japan And The United States," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 54(04), pages 489-527.
    5. Quibria, M.G & Ahmad, Shafi, 2007. "Aid Effectiveness in Bangladesh," MPRA Paper 10299, University Library of Munich, Germany, revised Sep 2008.
    6. Wako, Hassen, 2011. "Effectiveness of foreign aid in sub-Saharan Africa: Does disaggregating aid into bilateral and multilateral components make a difference?," MPRA Paper 72617, University Library of Munich, Germany.

    More about this item

    Keywords

    Foreign Aid; Development;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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