As is now well documented, aid is given for both political as well as economic reasons. The conventional wisdom is that politically-motivated aid is less effective in promoting developmental objectives. We examine the ex-post performance ratings of World Bank projects and generally find that...

Indonesia is, what the World Development Report 2008 calls, a transforming country characterized by increasing rural-urban income disparities and high poverty rates. Bearing these facts in mind, it is striking how little is known about causes and mechanism of the underlying determinants of...