Title: Can foreign aid buy growth?
1Can foreign aid buy growth?
Rochelle Harrison Matthew Plant Hamidat
Popoola Senyo Aidam Sikander Singh Chahal
Tameena Hira
- The effects of corruption and foreign aid on
developing countries
22007 Foreign Aid contribution UK and N.Ireland
3The Reality
- "Between 1970 and 1998, when aid flows to Africa
were at their peek, poverty in Africa rose from
11 to a staggering 66" - -Dambisa Moyo, Dead Aid
4Can Foreign Aid Buy Growth? - Easterly
- Burnside and Dollar's Aid, Policies and Growth
(2000)
5Corruption and Development - Pranab Bardhan
- 1. Good policies do not necessarily have to be
moral.
- 2. The only thing worse than a rigid over
centralised DISHONEST bureaucratic government is
a rigid over-centralised HONEST one' - -Samuel P. Huntington
- 3. The concept of Speed Money
- 4. Misuse of foreign Aid policy
6Resources and Incentives to Reform
A Model and some evidence on sub Saharan
African countries
- Low rates of investment and growth can be due to
poor infrastructure, bad policies and
institutions.
- The ruling elite will implement "bad policies"Â to
sustain their position where aid can become
ineffectual.
- A self interested government concerned with
- a) the welfare of its supporters
b) society's welfare as a whole.Â
- Conclusion aid should be conditional
7To what extent does policy in government
influence the effectiveness of foreign aid?
The Question and Verdict...
8Thank you for listening