effectiveness of foreign aid

7/26/2019 Effectiveness of Foreign Aid

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EFFECTIVENESS OF

FOREIGN AIDDickens Molo and Yong ZhaoApril !" #$%

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In&rod'c&ion

( )ha& is *oreign aid+

( T,pe o* *lo-s

( Deli.er, o* aids

( Ra&ionale *or aid( Donors

( Meas're/en& o* aid( Donors and recipien&s

(Aid e**ec&i.eness( Case s&'d, on 0en,a

( Concl'sion

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)ha& is Foreign Aid or Foreign Assis&ance+

( 1Flo-s o* o**icial *inancing ad/inis&ered -i&h &hepromotion of the economic development and welfare of

developing countries as the main objective" and -hich areconcessional in charac&er -i&h a gran& ele/en& o* a& leas&

2 percen& 3'sing a *i4ed $# percen& ra&e o* disco'n&56( S&a&is&ical Glossar," OECD

( Cash" &echnical assis&ance" and co//odi&ies

( Gran&s or s'7sidi8ed loans9

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Fo'r :road Econo/ic and De.elop/en& O7;ec&i.es

( S&i/'la&e econo/ic de.elop/en& &hro'gh 7'ilding o*in*ras&r'c&'res" s'ppor&ing prod'c&i.e sec&ors9

( S&reng&hen ed'ca&ion" heal&h" en.iron/en&al" or poli&icals,s&e/s9

( S'ppor& s'7sis&ence cons'/p&ion o* *ood and o&herco//odi&ies" especiall, d'ring relie* opera&ion orh'/ani&arian crises9

( To help s&a7ili8e econo/, *ollo-ing an econo/ic crisis9( Radele&" ##2%9##direc&l, &o &he 7',er and don& ha.e &o -ai& *or da,s &o recei.epa,/en&9L sa,s Ba/es Rada/a9

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0en,a Agric'l&'ral :io&echnolog, S'ppor& ?rogra/J Is an

o'&reach e4&ension progra/ ed'ca&ing ,o'ngscien&is&s" &he general p'7lic" polic,/akers" and&he /edia a7o'& 7io&echnolog, and 7iosa*e&,9Far/er .oca&ional &raining progra/s

co/ple/en&ed 7, a p'7licl, accessi7le -e7si&e-i&h 7io&ech in*or/a&ion" 7roch'res andin*or/a&ion 7ookle&s9

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I/ple/en&a&ion o* &he ?aris Declara&ion on aide**ec&i.eness in 0en,a

0en,a 7eing a signa&or, &o ?aris declara&ion" since ##2e/7arked on i/ple/en&ing &he resol'&ions agreed9 )hichincl'desJ

( Boin& par&icipa&ion in 7'dge&ar, process9

( S&reng&hen i&s s,s&e/s o* p'7lic *inancial /anage/en&9

( Transla&e core Go.ern/en& polic, s&a&e/en&s in&ocoheren& /edi'/@&er/ e4pendi&'re plans" co/ple&e -i&hsec&or ceilings and 7'dge& alloca&ions9

( To enhance o-nership and leadership in aid /anage/en&"0en,a E4&ernal Reso'rces ?olic, 30ER?5 &o ar&ic'la&e &heGo.ern/en&s polic, on /o7ili8a&ion o* e4&ernal *inancing

3Od'or and 0hahinga ##!5

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Challenges in i/ple/en&a&ion o* ?aris Declara&ionand ODA E**ec&i.eness

( Condi&ionali&,s -i&ho'& cons'l&a&ion

( :'rea'cra&ic proc're/en&s proced'res

( )eak linkage 7e&-een di**eren& go.ern/en&s donor@

*'nd /anage/en& 7odies( =ack o* &i/el, acco'n&ing *or &he *'nds

( =o- pro;ec& co/ple&ion ra&esJ In 0en,a i&s %,r

( Di.er&ing e4&ernal *inancesJ co//onl, *ro/ Capi&al

e4pendi&'re &o rec'rren& e4pendi&'re( :orro-ing &o repa,

( =ack o* /oni&oring" e.al'a&ion and i/pac& assess/en&agenc,

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( =ack o* aid har/oni8a&ion o* donor policies

( Capaci&, cons&rain&s like e4change ra&e risk d'e&o *l'c&'a&ions in &he credi&ors co'n&riesc'rrencies

( =ack o* progra/s &o /ain&ain and s's&ain &he

*'nded pro;ec&s9( )eak ins&i&'&ions

( =ack o* &rans/ission o* kno-ledge and capaci&,

( Dishar/on, a/ong donors progra//es andproced'res

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Concl'sion

The pro.ision o* aid has pla,ed a /a;or par& inde.elop/en& in /an, &hird -orld co'n&ries9

Foreign aid &here*ore /'s& 7e .ie-ed posi&i.el, as aca&al,s& *or de.elop/en& -hile s&ill apprecia&ing i&s

shor&co/ings9 o-e.er i& /'s& 7e no&ed &ha& *oreign aidonl, ,ields /a4i/'/ res'l&s i* co'pled -i&h &he necessar,social and poli&ical re*or/s especiall, poli&ical s&a7ili&, andso'nd go.ernance and an en&reprene'rial spiri& on &he par&

o* &he ci&i8ens9

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Re*erencesJ

(Agric'l&'ral sec&or de.elop/en& s&ra&erg, #$#@##9---9asc'9go9keDOCSASDS#Final9pd*

(Alesina A9 Dollar D9 ###9 )ho Gi.es Foregin Aid &o )ho/ and)h,+ !ournal of "conomic #rowth" 2J %%@

effectiveness of foreign aid

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