There is an urgent need to mainstream the key challenges of climate change into sector and development planning and decision making processes to create sustainable long-term development. Empirical results in this study emphasize that more caution is needed in directing overseas development aid...

We examine how foreign aid can be used to induce a recipient country to engage in trade-policy reforms. First, we develop a two-country and two-period theoretical model where the donor's promise of aid in period 2 depends on the recipient's chosen tariff in period 1. Without aid, optimal tariff...

Proposals for incorporating information on the quality of human, social, and environmental conditions in more authentic and comprehensive versions of the Gross National Product (GNP) or Gross Domestic Product (GDP) date back to the foundations of econometrics. Typically treated as external to...

Aid for Trade is a new international program to help developing countries meet the challenges of the multilateral trading system and benefit from the liberalization process. The European Union as the largest aid provider in the world is among the donors which has accepted this program and...

At present, the enhanced HIPC initiative and the Gleneagles Proposal for debt write-downs by the G8 are the main mechanisms used to reduce indebtedness of low-income countries. In these countries where poor governance is a key issue, it is naïve to believe that the Millennium Development Goals...

This paper examines whether foreign aid in education has a significant effect on growth. We take into consideration the heterogeneous nature of aid as well as the heterogeneity of aid recipients - we disaggregate the aid data into primary, secondary and higher education, and run separate...

We develop a theoretical model to compare the two major foreign aid modalities: project aid and budget support. These two modalities have a different impact on the production of 'developmental goods'. Firstly, conditionality can be associated with budget support, but only a subset of the...

With global disbursements of development assistance peaking at USD 106.8 bn. in 2005, governments are about to redeem their position as leading capital provider to developing nations. An important part of this surge can be attributed to the emergence of newly active donor countries in the...