This paper argues that the most important question regarding the efficacy of development assistance is not how much but rather for what. Economic integration and subsidiarity provides the conditions necessary for ODA to produce higher rates of economic growth on a sustained basis.

The effect of financial openness on economic integration for two clusters of countries is estimated: the formerly planned economies of Eastern Europe and central Asia (emerging market economies) and some western advanced economies. We focus on two dimensions of economic integration: convergence...

An importance source of finance for poorer economies, is foreign aid; this paper examines some controversies surrounding its provision. The advanced economies have provided hundreds of billions of dollars in aid to the developing world over the last several decades; although this has done much...