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 language | English |
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Title of host publication | Development in difficult sociopolitical context |
Subtitle of host publication | fragile, failed and pariah |
Editors | Anthony Ware |
Place of Publication | United Kingdom |
Publisher | Palgrave Macmillan |
Chapter | 8 |
Pages | 163-179 |
Number of pages | 17 |
ISBN (Electronic) | 9781137347633 |
ISBN (Print) | 9781137347626 |
DOIs | |
Publication status | Published - 2014 |