The method used by Development Assistance Committee countries for measuring the concessionality of aid loans has remained unchanged for nearly 20 years. It was designed to measure the net cost of aid to donors not the net benefit to recipients. The discount rate used takes no account of changes...

United States Development Assistance Policy: The Domestic Politics of Foreign Economic Aid. By Vernon W. Ruttan. Baltimore, MD and London: The Johns Hopkins University Press, 1996. Pp.xxiv + 657. £54. ISBN 0 8018 5051 7 India: Economic Development and Social Opportunity. By Jean Dreze and...