Assessing Foreign Aid’s Long-Run Contribution to Growth and Development

Arndt, Channing; Jones, Sam; Tarp, Finn

doi:10.1016/j.worlddev.2013.12.016

Cited by 248 publications

(162 citation statements)

References 27 publications

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“…Without question, in many case countries, aid has targeted improvements in exactly these areas and has provided often substantial funding and other resources to achieving these objectives. In sum, it is, in our view, difficult to see how the gains registered in the case countries, particularly the non-monetary gains, could have been achieved with zero or greatly reduced assistance, an observation that is consistent with up-to-date macroeconomic studies of aid impact (see, for example, Arndt, Jones, and Tarp 2015).…”

Section: Aid Flowssupporting

confidence: 62%

Growth and Poverty in Sub-Saharan Africa

2016

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While the economic growth renaissance in sub-Saharan Africa is widely recognized, much less is known about progress in living conditions. This book comprehensively evaluates trends in living conditions in sixteen major sub-Saharan African countries, corresponding to nearly 75 per cent of the total population. Authors, all with extensive knowledge of the country in question, were charged with conducting a careful assessment of the full range of available evidence to provide a succinct storyline and systematic explanation for trends in living conditions. A striking diversity of experience emerges. While monetary indicators improved in many countries, others are yet to succeed in channelling the benefits of economic growth into the pockets of the poor. Some countries experienced little economic growth, and saw little material progress for the poor. At the same time, the large majority of countries have made impressive progress in key non-monetary indicators of well-being. Overall, the African growth renaissance earns two cheers, but not three. While gains in macroeconomic and political stability are real, they are also fragile. Growth on a per capita basis is much better than in the 1980s and 1990s, yet not rapid compared with other developing regions. Importantly from a pan-African perspective, key economies—particularly Kenya, Nigeria, and South Africa—are not among the better performers. Looking forward, realistic expectations are required. The development process is, almost always, a long hard slog. Nevertheless, real and durable factors appear to be at play on the subcontinent with positive implications for growth and poverty reduction in future.

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Section: Aid Flowssupporting

confidence: 62%

Growth and Poverty in Sub-Saharan Africa

2016

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“…What did aid contribute? Arndt et al (2013) find that an average annual inflow of US$25 aid per capita over the period of 1970-2007 augmented average schooling by 0.4 years, boosted life expectancy by 1.3 years, reduced infant mortality by 7 in every 1000 births, and reduced poverty by around 6.5 percentage points. This is a significant achievement: not in every country, nor all the time, but broadly over nearly 40 years.…”

Section: What Has Aid Achieved?mentioning

confidence: 93%

Lessons for Japanese Foreign Aid from Research on Aid’s Impact

Addison¹,

Tarp²

2016

Japan’s Development Assistance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. UNU-WIDER gratefully acknowledges specific programme contributions from the governments of Denmark (Ministry of Foreign Affairs, Danida) and Sweden (Swedish International Development Cooperation Agency-Sida) for ReCom. UNU-WIDER also gratefully acknowledges core financial support to its work programme from the governments of Denmark, Finland, Sweden and the United Kingdom. Terms of use: Documents inThe World Institute for Development Economics Research (WIDER) was established by the United Nations University (UNU) as its first research and training centre and started work in Helsinki, Finland in 1985. The Institute undertakes applied research and policy analysis on structural changes affecting the developing and transitional economies, provides a forum for the advocacy of policies leading to robust, equitable and environmentally sustainable growth, and promotes capacity strengthening and training in the field of economic and social policy-making. Work is carried out by staff researchers and visiting scholars in Helsinki and through networks of collaborating scholars and institutions around the world.UNU-WIDER, Katajanokanlaituri 6 B, 00160 Helsinki, Finland, wider.unu.eduThe views expressed in this publication are those of the author(s). Publication does not imply endorsement by the Institute or the United Nations University, nor by the programme/project sponsors, of any of the views expressed.Abstract: Japan has an impressive history when it comes to aid, industrial policy, and infrastructure development, both as a country that saw meteoric development of its own, and as a country that has been one of the world's largest donors for decades. Looking towards an uncertain future in which infrastructure must be made resilient towards climate change, and the value of aid is questioned, few actors can offer more useful experience. Restoring structural transformation as a donor priority, and recognizing the critical role it played in the development of Japan, is a vital step towards making the real gains aid has provided in human security sustainable. Infrastructure investment can not only reduce spatial inequality, and provide the basis for growth through inter-connected regions and economic hubs, with enhanced national analytical capacity, and technical assistance to project preparation, it can help to provide the public goods that resonate most with Japan's vision of human security.

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“…The above observations are underpinned by the unpacking of the aid impact undertaken in Arndt, Jones, and Tarp (2015b) and the time-series study of aid to 36 African studies by Juselius, Møller, and Tarp (2014). Starting with Dalgaard and Hansen, the papers in this Special Issue, in different ways, substantiate this overall assessment, providing insights from a variety of complementary analytical approaches and empirical starting points.…”

Section: Convergencementioning

confidence: 99%

The Macroeconomics of Aid: Overview

Addison

Morrissey

Tarp

2017

The Journal of Development Studies

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This Special Issue explores macroeconomic effects of aid from various perspectives through a blend of studies, both conceptual and empirical in nature. The overall aim is to enhance the understanding of the macroeconomic dimensions of aid in the policy and research communities, and to inspire further innovative work in this important area. This opening article provides a scene setting summary of five generations of aid research, with a particular focus on how the JDS has contributed to this literature, and ends with an overview of the papers included in this Issue.

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Assessing Foreign Aid’s Long-Run Contribution to Growth and Development

Cited by 248 publications

References 27 publications

Growth and Poverty in Sub-Saharan Africa

Growth and Poverty in Sub-Saharan Africa

Lessons for Japanese Foreign Aid from Research on Aid’s Impact

The Macroeconomics of Aid: Overview

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