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...

Comparing aid flows in the 1990s with those from the 1970s make it clear that there are now many more countries receiving what may be termed "high aid" (say in excess of 30 percent of GNP) and that there has emerged a group of countries receiving very high aid. Whilst never formally considered...