The traditional aid-to-investment-to growth linkages are not very robust, especially for African economies. Aid does not necessarily finance investment and investment does not necessarily promote growth. Differences in economic policy, on the other hand, can explain much of the difference in...

There is some evidence that IMF and World Bank adjustment lending smooths consumption for the poor, reducing the rise in poverty for any given contraction of the economy but also reducing the fall in poverty for any given expansion. Adjustment lending plays a similar role as inequality, reducing...

Aid does not necessarily finance investment, and investment does not necessarily promote growth. But the combination of private investment, good policies, and foreign aid is quite powerful. When societies themselves take the lead in putting growth-enhancing policies in place, foreign aid can...

Those involved in the Millennium Development Goal (MDG) campaign routinely state Africa will miss all the MDGs. This paper argues that a series of arbitrary choices made in defining success or failure as achieving numerical targets for the Millennium Development Goals made attainment of the MDGs...

Those involved in the millennium development goal (MDG) campaign routinely state ‘‘Africa will miss all the MDGs.” This paper argues that a series of arbitrary choices made in defining ‘‘success” or ‘‘failure” as achieving numerical targets for the MDGs made attainment of the...

In the new millennium, the Western aid effort towards Africa has surged due to writings by well-known economists, a celebrity mass advocacy campaign, and decisions by Western leaders to make Africa a major foreign policy priority. This survey contrasts the predominant "transformational" approach...

The Burnside and Dollar (2000, AER) finding that aid raises growth in a good policy environment has had an important influence on policy and academic debates. We conduct a data gathering exercise that updates their data from 1970 -93 to 1970 -97, as well as filling in missing data for the...

Intro -- Contents -- Foreword -- 1 Introduction: Can't Take It Anymore? -- 2 Making Aid Work -- 3 Use of Randomization in the Evaluation of Development Effectiveness -- 4 It Pays to Be Ignorant: A Simple Political Economy of Rigorous Program Evaluation -- 5 Solutions When the Solution Is the...

This paper does not address the issue of aid effectiveness - that is, the extent to which aid dollars actually achieve their goals - but instead focuses on best practices in the way in which official aid is given, an important component of wider debate. First, we discuss best practice for an...

The widely publicized finding that "aid promotes growth in a good policy environment" is not robust to the inclusion of new data or alternative definitions of "aid," "policy" or "growth." The idea that "aid buys growth" is on shaky ground theoretically and empirically. It doesn't help that aid...