For a growing number of countries in Africa the discovery and exploitation of natural resources is a great opportunity, but one accompanied by considerable risks. This book presents research on how to better manage the revenues and opportunities associated with natural resources.

This paper takes a fresh look at two issues in the aid effectiveness debate. We begin by providing theoretical foundations for the various claims made with regard to the effectiveness of aid in stimulating long-run productivity. When foreign aid is modelled as an exogenous transfer of income or...