This paper takes a fresh look at three issues in the aid effectiveness debate. First, we assess the theoretical case for foreign aid. Using an endogenous growth version of the standard overlapping generations model, we show that aid can be an effective policy tool in spurring growth in poor...

Growing criticism of inefficient development aid demanded new planning instruments of donors, including international NGOs (INGOs). A reorientation from isolated project-planning towards holistic country concepts and the increasing rationality of a result-orientated planning process were seen as...

When the longest-serving African dictator, Togo's Gnassingbé Eyadéma, died unexpectedly in February 2005 after 38 years of autocratic rule, Togo became a test case for indigenous democratisation efforts of African states. However, it soon became clear that a change of regime through the ballot...

Does foreign aid reduce extreme poverty in Peru? Under a quatitative analysis the paper shows big doubts for this hypothesis. Donor fragmentation and inadequate planification are two drivers in the explanation. Impact evaluations are necessary and Peru has enough techical capacity to carry on...

Over the last five decades, development assistance has evolved dramatically in response to an equally mutable global political and economic landscape. In this paper, we examine this evolution and discuss how the effectiveness of aid has been and will be seen in the eyes of donors, intended...

The Two-Gap Model suggests that the Poor countries have to rely on the foreign resources to fill the two Gaps: Import-Export Gap and the Savings-Investment Gap. There are many forms of the foreign resources like FDI (Foreign Direct Investment), External loans & Credit, technical assistance,...

Global flows of Official Development Assistance are large and there is a large literature devoted to testing the effectiveness of these large flows. While among the poorest and the top recipients of foreign aid, Small Island Developing States (SIDS) are usually left out in the aid effectiveness...

So far no existing study has analyzed what determines people’s trust in the IMF, the World Bank, and the WTO even though – in the absence of democratic accountability – this is one of the few ways to assess the legitimacy of these institutions. This study is intended to fill this gap in...

The issue of foreign aid dependency in African countries remains controversial among policy makers. So far, there is no consensus on aid effectiveness and the resulting policy prescriptions have been conflicting. The Euro zone which provides the bulk of foreign aid to developing countries, is...

The aim of this survey is to explain the real impact of aid on governance in the developing countries: including the subsahara and the MENA region during the period 1990-2004 by using the “threshold theory”. Stephen Knack proved that foreign aid had a harmful impact on the governance of the...