Foreign Aid and Development: Lessons Learnt and Directions For The Future (Routledge Studies in Development Economics)
Peter Hjertholm, Editorial Assistant
Aid has worked in the past but can be made to work better in the future. In this important new book, leading economists and political scientists, including experienced aid practitioners, re-examine foreign aid. The evolution of development doctrine over the past fifty years is critically investigated, and conventional wisdom and current practice is challenged. As well as offering important new research material, the book opens up new directions for future practice and policy. It will be of vital interest to those working in economics, politics and development studies, as well as to governmental and aid professionals.
transactions) to improve the performance of food aid interventions. A triangular transaction means that a donor procures food commodities in one developing country to use as food aid in another, and a local purchase means that the donor procures food commodities in surplus areas for use as food aid in deficit areas of the same country. The documentation of the experiences with cash transactions is scarce. However, evidence from the late 1980s (RDI 1987, Clay and Benson 1990 and Fitzpatrick and
and spread rapidly in developing countries. This inward-looking approach to industrial growth led to the fostering of a number of highly inefficient industries. It should not be inferred that the emphasis on investing in the urban modern sector in import-substituting production activities and physical infrastructure was undesirable from all standpoints. This process did help start industrial development and contributed to the growth of the modern sector. It may even, in some cases, have provided
bimodal strategy, which encourages the growth of the modern, commercial, large-scale, relatively capital-intensive sub-sector of agriculture while ignoring for all practical purposes the traditional subsistence sub-sector. Under the unimodal approach, agricultural development was spread relatively evenly over the mass of the people through a combination of appropriate agricultural research and technology, land redistribution, the provision of rural infrastructure, the growth of rural institutions
unsuccessful. The main country-level coordinating mechanism is Consultative Groups (or Round Tables) at which the donor community presents the recipient with a report card and their latest concerns and conditions. The donor co-ordinating body for support to adjustment in Africa, the Special Programme of Assistance for Africa (SPA), has no African representation. Yet, it does not necessarily have to be like this. The Marshall Plan was administered by a committee (the Organisation for European
one can draw on both traditional growth theory and new growth models to illustrate how aid can potentially impact on economic growth through a highly diverse set of channels. For example, Cassen and associates (1994) argue that there is plenty of evidence to substantiate the view that development projects have often yielded respectable economic rates of return. Similarly, numerous case studies support the World Bank (1998a) observation that aid has, at times, been a spectacular success. It is