Chapter

Aid, Growth, and Development<sup>1</sup>

Finn Tarp

in Foreign Aid for Development

Published in print February 2010 | ISBN: 9780199580934
Published online May 2010 | e-ISBN: 9780191723346 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199580934.003.0002

Series: WIDER Studies in Development Economics

Aid, Growth, and Development1

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Foreign aid looms large in the public discourse; and international development assistance remains squarely on most policy agendas concerned with growth, poverty, and inequality in Africa and elsewhere in the developing world. The present review takes a retrospective look at how foreign aid has evolved since the Second World War in response to a dramatically changing global political and economic context. I review the aid process and associated trends in the volume and distribution of aid and categorize some of the key goals, principles, and institutions of the aid system. The evidence on whether aid has been effective in furthering economic growth and development is discussed in some detail. I add perspective and identify some critical unresolved issues. I finally turn to the current development debate and discuss some key concerns that should be kept in mind in formulating any agenda for aid in the future.

Keywords: foreign aid; aid impact

Chapter.  15095 words.  Illustrated.

Subjects: Economic Development and Growth

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