Effectiveness of foreign aid in sub-Saharan Africa: Does disaggregating aid into bilateral and multilateral components make a difference?

Wako, Hassen Abda

doi:10.5897/jeif11.126

Cited by 6 publications

(8 citation statements)

References 40 publications

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“…This indicates a substantial improvement even though the trajectory remained on the negative trend but with less severity in the long run. This outcome supports the findings in Wako (2011) and Cordella and Ulku (2007) which suggest that bilateral aid and degree of concessionality have not been effective in promoting growth in the SSA. In contrast, our estimation based on concessional debts from multilateral sources revealed that multilateral concessional aids had a positive impact on growth both in the short run and long run.…”

Section: Discussionsupporting

confidence: 85%

“…Economic growth in developing countries is believed to have been negatively influenced by the uncertainty associated with the flows of ODA and aid in most investigated cases (Stojanov et al, 2019). Wako (2011), for instance, examined the effect of bilateral and multilateral aid on economic growth in the SSA region using the system generalized method of moments (GMM) estimator. The findings showed that multilateral and bilateral aids were ineffective at enhancing economic growth.…”

Section: Empirical Reviewmentioning

confidence: 99%

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Effectiveness of bilateral and multilateral concessional debts on economic growth in Africa

Ezeaku

Egbo

Nwakoby

et al. 2019

IJOEM

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Purpose The purpose of this paper is to assess the relative effectiveness of bilateral and multilateral concessional debts on economic growth in 32 sub-Saharan African (SSA) countries over the period 1985–2016. Design/methodology/approach The recently developed dynamic panel autoregressive distributed lag models which comprise three different estimators, the mean group, pooled mean group (PMG) estimator and dynamic fixed effect, were applied to estimate the model. Following these estimators, the Hausman test was employed to determine the efficient and consistent estimator. Findings The results showed that bilateral concessional debts had a negative impact on growth. From the findings, a 1 percent increase in bilateral concessional debts induced economic growth to decline by 38.1 percent points in the short run, and by 7.1 percent points in the long run; convergence to long-run equilibrium adjusted at the speed of 90 percent on an annual basis. Multilateral concessional debts were found to have a positive impact on growth both in the short and long run. The coefficient of the error term was negatively signed and indicates that deviations from the long-run equilibrium path were being corrected at the speed of 89.4 percent annually. Originality/value To the authors’ best knowledge, empirical studies that specifically seek to examine how bilateral and multilateral concessional debts impacted on growth are yet to attract the attention of researchers. As a result, this study will complement related extant growth studies, especially in the case of SSA.

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Section: Discussionsupporting

confidence: 85%

Section: Empirical Reviewmentioning

confidence: 99%

Effectiveness of bilateral and multilateral concessional debts on economic growth in Africa

Ezeaku

Egbo

Nwakoby

et al. 2019

IJOEM

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“…Similarly, Karras (2006), Clemens, Radelet, andBhavnani (2004) and Ardnt et al (2010) found a positive and statistically significant relation between aid and growth. In contrast, Wako (2011) had a different perspective and argued that multilateral and bilateral aids are ineffective at enhancing growth. In a related study, Ogundipe et al (2014) are of the view that aid has no significant influence on real GDP per capita in SSA.…”

Section: Discussionmentioning

confidence: 99%

On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa

et al. 2019

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This article assesses the effectiveness of bilateral concessional debts on living standards in 29 sub-Saharan African (SSA) countries over the period 1999-2017 using the system generalized method of moments (SGMM). The SGMM linear estimate is based on a two-step procedure, which controls for heteroscedasticity. The results provide evidence that bilateral concessional debts had positive and significant impact on living standards as proxied by the human development index (HDI) within the period. It is observed that 1% change in bilateral concessional debts is associated with about 8.4% improvement in living standards. Gross domestic savings are positively and significantly related to living standards and account for 3.1% increase in living standards. However, gross domestic investment and population growth exerted a negative influence on living standards during the period, whereas a 1% increase in gross domestic investment and population led to approximately 1.40% and 1.63% decline in living standards in the region, respectively. We therefore conclude that, although bilateral concessional debts have yielded the desired effect on living standards in the SSA, there is need for improvements in aid effectiveness. Thus, improved donor effort and collaboration with beneficiary governments in determining development needs and priorities in the region is critical.

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“…Or, as Gillanders (2016) reveals, whilst direct aid seems to work in terms of generating economic growth, it does not do so to a level that can be called transformative. Relatedly, Wako (2011) concludes that bilateral and multilateral aid on its own, or in interaction with policy, is ineffective at enhancing economic growth.…”

Section: Interventions In Africa: How the Past Informs The Presentmentioning

confidence: 99%

Storying ourselves: Black Consciousness thought and adolescent agency in 21st-century Africa

Boehmer

Desmond

Mahali

et al. 2021

Journal of Postcolonial Writing

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Mindful of 2020's global focus on questions of systemic racism, this article looks at the continuing salience of the South African activist Steve Biko's ideas about Black Consciousness and consciousnessraising as they impact young people's empowerment in African countries. In the context of the UK Research and Innovation Global Challenges Research Fund (UKRI GCRF) Accelerate Hub (2019-24), a project exploring interventions in adolescents' lives across the continent, it considers the ongoing relevance of Biko's thought in changing mindsets, challenging institutional racism, interrogating the dependency relations that underpinned 20thcentury African aid programmes, and transforming the narratives young people in Africa tell about themselves. The article outlines how Hub workshops introduce young people to the Biko-inspired practice of storytelling as speaking from where you stand, resisting negative stereotyping. It offers recommendations concerning agency and intervention drawn from Biko's key text, I Write What I Like (1978).

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Effectiveness of foreign aid in sub-Saharan Africa: Does disaggregating aid into bilateral and multilateral components make a difference?

Cited by 6 publications

References 40 publications

Effectiveness of bilateral and multilateral concessional debts on economic growth in Africa

Effectiveness of bilateral and multilateral concessional debts on economic growth in Africa

On the Dynamic Effect of Bilateral Concessional Debts on Living Standards in Sub-Saharan Africa

Storying ourselves: Black Consciousness thought and adolescent agency in 21st-century Africa

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