Foreign aid, development and civil war in Nepal

Kishor Sharma

Research output: Book chapter/Published conference paperChapter (peer-reviewed)

Abstract

A growing literature on development in fragile states has led policymakers to revisit the role of foreign aid and economic development in post-conflict situations. The proponents of aid argue that aid helps accelerate growth, and thereby addresses poverty and underdevelopment (Dalgaard et al. 2004; Hansen & Trap 2001; Sachs 2005), while critics show evidence that aid retards growth by discouraging saving and investment, and perpetuating corruption in poor countries (Easterly et al. 2003). Burnside & Dollar (2000) and Collier & Dollar (2001) have contributed to this debate by demonstrating that aid is growth- enhancing in countries with good policies and institutions, thereby implying that linking aid to policy reform should help accelerate growth and alleviate poverty — although their findings have been debated (see, for example, Dalgaard et al. 2004; Easterly et al. 2003). As this debate continues, the literature on aid effectiveness has been growing.
Original languageEnglish
Title of host publicationDevelopment in difficult sociopolitical context
Subtitle of host publicationfragile, failed and pariah
EditorsAnthony Ware
Place of PublicationUnited Kingdom
PublisherPalgrave Macmillan
Chapter8
Pages163-179
Number of pages17
ISBN (Electronic)978-1-137-34763-3
ISBN (Print)9781137347626
DOIs
Publication statusPublished - 2014

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    Sharma, K. (2014). Foreign aid, development and civil war in Nepal. In A. Ware (Ed.), Development in difficult sociopolitical context: fragile, failed and pariah (pp. 163-179). Palgrave Macmillan. https://doi.org/10.1057/9781137347633_8