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Foreign Aid Allocation, Governance, and Economic Growth (International Food Policy Research Institute), by Kamiljon T. Akramov
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How important is foreign aid in fostering economic growth in developing countries? Does it help recipient countries, hurt them, or have little effect either way? Foreign Aid Allocation, Governance, and Economic Growth investigates this issue by looking at foreign aid by sector rather than treating it as an aggregate amount. Aid can be allocated to a recipient's production sectors (such as agriculture, manufacturing, or mining), economic infrastructure (such as transport, storage, or communications networks or power generation facilities), or social sectors (such as education or healthcare). This book differentiates among various channels through which each of these three categories of foreign aid affects economic growth.
The findings suggest that economic aid, including aid to production sectors and economic infrastructure, contributes to economic growth by increasing domestic investment. Aid to social sectors, however, does not appear to have a significant impact on human capital (measured by school enrollment) and economic growth. This study also assesses the degree to which the quality of democratic governance in a recipient country influences foreign aid's effectiveness and finds that democracy is no guarantee of aid effectiveness. In fact, economic aid to less democratic countries can lead to better economic growth, at least initially, provided the aid recipients secure property rights and allow capital accumulation. Although further research into the question is necessary, Foreign Aid Allocation, Governance, and Economic Growth suggests that aid targeted to increasing domestic investment might be an effective means of fostering economic growth in less developed countries.
- Sales Rank: #2593216 in Books
- Brand: Akramov, Kamiljon T.
- Published on: 2012-04-17
- Original language: English
- Number of items: 1
- Dimensions: 9.10" h x .90" w x 6.20" l, .90 pounds
- Binding: Hardcover
- 184 pages
- Used Book in Good Condition
About the Author
Kamiljon T. Akramov is a research fellow in the Development Strategy and Governance Division of the International Food Policy Research Institute, Washington, D.C.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Excellent Book on Foreign Aid
By Bekzod K. Akramov
This is an excellent book that explores various aspects of foreign aid allocation. The author examines the issue by disaggregating foreign aid and suggests that more efficient allocation of aid can lead to higher economic growth in recipient countries. By analyzing various channels through which aid affects economic growth in a recipient country, the author finds that aid targeting domestic investment, which includes aid to production sectors and economic infrastructure, might be the most effective means of generating economic growth in recipient countries. The book is a great read for anyone interested in foreign aid allocation and economic development in less developed countries.
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