This paper presents an overview of the economics of international aid, highlighting the historical literature and the contemporary debates. It reviews the “trade-theoretic” and the “contract-theoretic” analytical literature, and the empirical and institutional literature. It demonstrates...

The global International Financial Institutions (IFI’s) increasingly justify their operations in terms of the provision of International Public Goods (IPG’s). This is partly because there appears to be support among the rich countries of the North for expenditures on these IPG’s, in...

How does development economics address the issue of gains and losses from the displacement that inevitably accompanies many development processes? This paper argues that economists have struggled mightily between the core criterion of a “Pareto improvement”, which vests individuals with...

This paper establishes some general principles of the rationale for development assistance in Middle Income Countries and then applies these principles to the operations of the World Bank. It then puts the argument through its paces for the specific case of India, which has just transitioned...

Two decades ago, 93% of the world’s poor lived in countries officially classified as Low Income (LICs). Now, 72% of the world’s poor live in Middle Income Countries (MICs). The dramatic shift has been brought about by fast growth in a number of countries with large populations. On present...

Governance and the “Karnataka Model of Development” Gopal Kadekodi, Ravi Kanbur and Vijayendra Rao; Change in Karnataka Over the Last Generation: Villages and the Wider Context James Manor; The Political Economy of Gram Panchayats in South India Timothy Besley, Rohini Pande and Vijayendra...

Development economics nowadays is mainstream economics applied to poor countries. An examination of the core principles of mainstream economics reveals tremendous strengths, but also tremendous weaknesses. Other disciplines, such as sociology, anthropology and political science, have...

Globalization and Economic Reform have enormous potential for economic growth and poverty reduction. But there are at least three troubling features of these phenomena that have emerged over the last two decades—technical change which is biased in favor of capital and skilled labor; increased...

This paper analyses the impact of aid, and its optimal allocation, when conditionality is ineffective. It is assumed that the recipient government will implement its own preferences no matter what. In this set up, aid can still affect the behavior of a recipient, not through conditionality but...