The macroeconomic rationale for aid relates to its ability to supplem­ent savings, foreign exchange and government revenue, thus contributing to ­growth. This processes presumes a simple ­Harrod-Domar context in which growth is driven by physical capital formation. ­However, the...

This paper (i) traces the historical origins of foreign aid, (ii) investigates tren­ds in the volume, composition, allocation and quality of aid flows, and (iii) reviews the empirical literature on aid allocation. The paper concludes that, historically, aid has served a multitude of objectives....

Official flows account for close to half of capital flows to developing countries, and close to 90 per cent of receipts for Sub-Saharan Africa. This paper documents trends in these official flows over the last three decades. The most striking trend has been declining aid volume. Following two...

This paper documents trends in official development assistance (ODA) over the last three decades. It examines trends in both aid amounts and the quality of aid. It finds that the real value of ODA has declined during the 1990s following two decades of relative stability. The share of foreign aid...