Controversy over the aggregate impact of foreign aid has focused on reduced form estimates of the aid-growth link. The causal chain, through which aid affects developmental outcomes including growth, has received much less attention. We address this gap by: (i) specifying a structural model of...

Africa has come a long way since the economic turmoil of the 1980s, the decade of "structural adjustment". Growth has been strong, yet poverty remains high. Underlying the shortage of good livelihoods and high social inequality is the lack of diversification in Africa's economies-in contrast to...

This paper confirms recent evidence of a positive impact of aid on growth and widens the scope of evaluation to a range of outcomes including proximate sources of growth (e.g., physical and human capital), indicators of social welfare (e.g., poverty and infant mortality), and measures of...

This paper compares the use of Challenge Funds by the UK's Department for International Development and Sweden's International Development Agency to address gender challenges in development. Challenges Funds are meant to bring the interests of business and donors together by stimulating...

To continue its economic growth and create new and better livelihoods, Africa must transform the productive side of its economy. Ongoing globalization - in trade, finance, and technology - opens up new possibilities for structural transformation, but also new risks as Africa's integration with...

The aid-growth literature has been explored using a wide range of econometric methodologies. The evidence of the effectiveness of aid to promote economic growth is mixed, suggesting that the link between aid and growth is complex and may not be well identified by traditional methods. We take...

The foreign aid landscape has undergone a paradigm shift in the last few decades, with changes in the behaviour of 'traditional' donors and a new focus on selectivity in aid disbursement, as well as 'new' donors and South-South co-operation playing an increasingly important role. Amidst these...

While developing countries have made some progress in achieving human development since the turn of the century, many are still lagging behind in important human development goals such as education, health, nutrition and access to clean drinking water and improved sanitation. Moreover, gender...

Institution-building in Somalia has met with high levels of failure for two decades. But successes have occurred in other Somali-inhabited regions of the eastern Horn, and have been especially present at the local and municipal level. The most effective aid to institution-building in Somalia has...

As a sovereign country, Mozambique initially relied on international solidarity and managed its donor relations well. Donor dependency entailed some loss of agency for the government as it allowed donors to challenge its capacity but never its authority. However, in the last decade, donor...