Aid and Governance: Negative Returns?

Brazys, Samuel

doi:10.1057/ejdr.2014.77

Cited by 23 publications

(2 citation statements)

References 57 publications

(52 reference statements)

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“… 97. Log( distance )=8.5 at approximately the 25th percentile for distance . Recent research examines whether aid decreases quality of governance (e.g., Brazys 2016), suggesting the possibility of reverse causality. The fact that this relationship depends on distance decreases the likelihood that reverse causality is driving the results in Figure 2, unless there is a theory that aid would decrease governance quality in nearby but not in more distant states, which seems unlikely. …”

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confidence: 99%

Aid Allocation and Targeted Development in an Increasingly Connected World

Bermeo¹

2017

Int Org

117

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Aid donors pursue a strategy of targeted development with regard to recipient states. The determinants of aid allocation have shifted significantly. Industrialized states are increasingly unable to insulate themselves from spillovers caused by underdevelopment abroad. Donors attempt to use aid to decrease these spillovers, targeting developing countries where the effects on the donor are anticipated to be large. Once a recipient is chosen, concern for recipient government capacity guides the composition of aid. Empirical analysis of aid allocation from 1973 to 2012 demonstrates that, while explanations based on security and economic ties to the donor explain allocation well in the Cold War, the post-2001 period is best understood by incorporating a role for targeted development. This framework helps synthesize various findings in the aid allocation literature and has important implications for studying aid effectiveness.

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confidence: 99%

Aid Allocation and Targeted Development in an Increasingly Connected World

Bermeo¹

2017

Int Org

117

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“…This issue raises a question about the possibility of considering aid as a rent source. Many scholars agree that aid has similar negative results to natural resources (Knack 2001;Brazys 2016) and "might create perverse incentives and lead to anti-developmental outcomes" (Moss et al 2006: 4). Besides, the external character of the aid makes recipient governments accountable mainly to foreign donor countries and their citizens, not to their own voters (Brautigam 1992).…”

Section: Theoretical Framework: Rentier State Theory Unearned Income ...mentioning

confidence: 99%