On foreign aid effectiveness: when conditionality met ownership

2021 ◽  
pp. 1-18
Author(s):  
Francisco Candel-Sánchez
Keyword(s):  
Foreign Aid ◽  
Aid Effectiveness

Navigation by Judgment

2018 ◽  
Author(s):  
Dan Honig
Keyword(s):  
Foreign Aid ◽  
Aid Effectiveness ◽  
Field Worker

When should foreign aid organizations empower actors on the front lines of delivery to rely on their judgment to guide aid interventions, and when should distant headquarters lead? Understanding how best to manage the implementation of aid projects matters both for aid effectiveness and for what it tells us about the more general tension between central versus field worker control in organizations.

Foreign Aid

2018 ◽  
pp. 393-415 ◽  
Author(s):  
Axel Dreher ◽  
Valentin F. Lang ◽  
Sebastian Ziaja
Keyword(s):  
Foreign Aid ◽  
Relative Effectiveness ◽  
Recipient Country ◽  
Aid Effectiveness ◽  
Heterogeneous Group ◽  
Social Outcomes ◽  
Different Types

This chapter reviews the aid effectiveness literature to assess whether foreign aid given to areas of limited statehood (ALS) can be expected to promote economic and social outcomes in the recipient country. It distinguishes between different types of aid, motives for granting it, recipient country policies and characteristics, and the modalities by which aid is delivered, as these factors have been argued to influence its effectiveness. This chapter then compares these properties between recipients most affected by limited statehood and those least affected. This allows us to assess the relative effectiveness of aid in countries with ALS. We conclude that on average aid given there is less likely to be effective than elsewhere. As countries with ALS, however, constitute a heterogeneous group, the specifics of individual countries and the types of aid given matter.

Motivations for Bilateral Aid Allocation in Korea: Humanitarian, Commercial, or Diplomatic?

2015 ◽  
Vol 14 (1) ◽  
pp. 180-197
Author(s):  
Bokyeong Park ◽  
Hongshik Lee
Keyword(s):  
Foreign Aid ◽  
Aid Effectiveness ◽  
Allocation Rule ◽  
National Interests ◽  
Aid Allocation ◽  
Bilateral Aid ◽  
External Pressures ◽  
Overseas Investment ◽  
Over Time ◽  
Resource Security

This study investigates Korea's motivations for foreign aid allocation, analyzing panel data from over 180 countries for the last 20 years. The results show that Korea's aid allocation reflects both recipient needs and Korea's own national interests but does not consistently consider aid effectiveness. Korean aid is also characterized by its use as an instrument of both summit diplomacy and resource security. In addition, its commercial motivations appear to have shifted over time, from export promotion to overseas investment support. Despite internal and external pressures, there is no obvious evidence that Korea's allocation rule converges with international guidelines that recommend greater consideration of recipient needs and aid effectiveness and less consideration of donor interests.

Political regimes and foreign aid effectiveness in Ghana

2019 ◽  
Vol 18 (1) ◽  
pp. 15-33 ◽  
Author(s):  
Vincent Konadu Tawiah ◽  
Evans John Barnes ◽  
Prince Acheampong ◽  
Ofori Yaw
Keyword(s):  
Economic Growth ◽  
Foreign Aid ◽  
Political Ideology ◽  
Aid Effectiveness ◽  
Political Agenda ◽  
Annual Data ◽  
Political Regimes ◽  
Data Set ◽  
Content Type ◽  
The Government

Purpose This paper has examined the effectiveness of foreign aid on Ghanaian economy under different political regimes. Design/methodology/approach Using vector error correction and co-integration models on the annual data set over a period of 35 years, the authors demonstrate that foreign aid has had varied impacts on economic growth depending on the political ideology of the government in power. Findings With capitalist political philosophy, foreign aid improves private sector growth through infrastructural development. On the other hand, a government with socialist philosophy applies most of its foreign aid in direct social interventions with the view of improving human capital. Thus, each political party is likely to seek foreign aid/grant that will support its political agenda. Overall, the results show that foreign aid has a positive impact on the growth of the Ghanaian economy when there is good macroeconomic environment. Practical implications This implies that the country experiences economic growth when there are sound economic policies to apply foreign aid. Originality/value The practical implication of the findings of this paper is that donor countries and agencies should consider the philosophy of the government in power while granting aid to recipient countries, especially in Africa. The results are robust to different proxies and models.

scholarly journals Where Does the Money Go? Best and Worst Practices in Foreign Aid

2008 ◽  
Vol 22 (2) ◽  
pp. 29-52 ◽  
Author(s):  
William Easterly ◽  
Tobias Pfutze
Keyword(s):  
Best Practices ◽  
Foreign Aid ◽  
Best Practice ◽  
Technical Assistance ◽  
Aid Effectiveness ◽  
Food Aid ◽  
Limited Information ◽  
Different Dimensions ◽  
Tied Aid ◽  
The Way

This paper does not address the issue of aid effectiveness—that is, the extent to which foreign aid dollars actually achieve their goals—but on “best practices” in the way in which official aid is given, an important component of the wider debate. First we discuss best practice for an ideal aid agency and the difficulties that aid agencies face because they are typically not accountable to their intended beneficiaries. Next we consider the transparency of aid agencies and four additional dimensions of aid practice: specialization, or the degree to which aid is not framgemented among too many donors, too many countries, and too many sectors for each donor); selectivity, or the extent to which aid avoids corrupt autocrats and goes to the poorest countries; use of ineffective aid channels such as tied aid, food aid, and technical assistance; and the overhead costs of aid agencies. We compare 48 aid agencies along these dimensions, distinguishing between bilateral and multilateral ones. Using the admittedly limited information we have, we rank the aid agencies on different dimensions of aid practice and then provide one final comprehensive ranking. We present these results as an illustrative exercise to move the aid discussion forward.

The Politics of Private Foreign Aid: Humanitarian Principles, Economic Development Objectives, and Organizational Interests in NGO Private Aid Allocation

2012 ◽  
Vol 66 (4) ◽  
pp. 571-607 ◽  
Author(s):  
Tim Büthe ◽  
Solomon Major ◽  
André de Mello e Souza
Keyword(s):  
Foreign Aid ◽  
Latin American ◽  
Strong Support ◽  
Original Data ◽  
Development Aid ◽  
Aid Effectiveness ◽  
Regional Effect ◽  
Data Set ◽  
Aid Allocation ◽  
Development Ngos

AbstractA large and increasing share of international humanitarian and development aid is raised from nongovernmental sources, allocated by transnational NGOs. We know little about this private foreign aid, not even how it is distributed across recipient countries, much less what explains the allocation. This article presents an original data set, based on detailed financial records from most of the major U.S.-based humanitarian and development NGOs, which allows us for the first time to map and analyze the allocation of U.S. private aid. We find no support for the common claim that aid NGOs systematically prioritize their organizational self-interest when they allocate private aid, and we find only limited support for the hypothesis that expected aid effectiveness drives aid allocation. By contrast, we find strong support for the argument that the deeply rooted humanitarian discourse within and among aid NGOs drives their aid allocation, consistent with a view of aid NGOs as principled actors and constructivist theories of international relations. Recipients' humanitarian need is substantively and statistically the most significant determinant of U.S. private aid allocation (beyond a regional effect in favor of Latin American countries). Materialist concerns do not crowd out ethical norms among these NGOs.

scholarly journals Aid Targeting to Fragile and Conflict-Affected States and Implications for Aid Effectiveness

2019 ◽  
Vol 7 (2) ◽  
pp. 93-102
Author(s):  
Yiagadeesen Samy ◽  
David Carment
Keyword(s):  
Foreign Policy ◽  
Foreign Aid ◽  
Recent Work ◽  
Reporting System ◽  
Aid Effectiveness ◽  
Related Issue ◽  
Fragile States ◽  
Fragility Index ◽  
Conflict Affected States

While significant amounts of foreign aid have been allocated to the group of so-called fragile and conflict-affected states in recent years, it is not clear whether that aid is targeted to where it is most needed. This article extends recent work by Carment and Samy (2017, in press), and focuses on aid targeting in fragile states by using the Country Indicators for Foreign Policy fragility index together with sectoral aid flows from the OECD Creditor Reporting System. Specifically, it considers six country-cases from a three-fold typology of states and evaluates the performance of these countries in terms of their fragility relative to the types of aid that they have received. The article argues that aid is poorly targeted in fragile states and by considering the sectoral allocation of aid it also contributes indirectly to the related issue of aid effectiveness.

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