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Governance does matter for the Allocation of Foreign Aid

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NOPOOR POLICY BRIEF No 9 GOVERNANCE DOES MATTER FOR THE ALLOCATION IfW.pdf (416.1Kb)
Date
2016
Publishing date
04-2016
Collection title
NOPOOR Policy Brief
Collection Id
9
Dewey
Croissance et développement économiques
Sujet
foreign aid; governance; State institutions
JEL code
L.L3.L31; F.F3.F35
URI
https://basepub.dauphine.fr/handle/123456789/18088
Collections
  • Projet Nopoor
Metadata
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Author
Barsbai, Toman
142116 Kiel Institute for the World Economy
Thiele, Rainer
142116 Kiel Institute for the World Economy
Type
Rapport
Item number of pages
6
Abstract (EN)
Acknowledging that the effectiveness of development cooperation depends on the quality of governance in recipient countries, donors may still give foreign aid to poorly governed recipients because of a dilemma they face: those countries most in need typically also lack good institutions. This policy brief shows that donors resolve this dilemma by bypassing weak state institutions and delivering more aid through NGOs and multilateral organizations. In doing so, they may however forego the opportunity to help improve local institutions and thereby foster long-run development.

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