This paper isolates seven lessons from the experience with international development cooperation focusing on the role of institutions and of foreign aid in development. The first lessons is that the institutional infrastructure of a country is key to it's successful development. The second...

Critics of foreign aid programs argue that these funds often support corrupt governments and inefficient bureaucracies. Supporters argue that foreign aid can be used to reward good governments. This paper documents that there is no evidence that less corrupt governments receive more foreign aid....