Bauer, P. T., <i>Dissent on Development: Studies and Debates</i> in <i>Development Economics</i>, Cambridge, Harvard University Press, 1972, 550 pp. ($15.00)

Barber, William J.

doi:10.2307/1239326

Cited by 22 publications

(30 citation statements)

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“…According to Kaldor (1963), the key determination of whether a state moves from aid dependency to economic self-sufficiency is the degree to which the state learns how to tax, thereby leading to a lessening of the need for aid. According to Bauer (1976), foreign aid displaces the processes of institutional maturation essential to development, including the capacity of the state to collect revenue. Azam et al (1999) arrive at a similar conclusion, claiming that the ability of a state to remove itself from reliance on aid will depend on the degree to which the state engages in learning-by-doing in the public sector, a process that is greatly affected by the level of aid in relation to overall revenue and the initial institutional conditions.…”

Section: The Aid-revenue Relationshipmentioning

confidence: 99%

An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa

Pettersson²,

2006

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A number of proposals today support a substantial increase in foreign aid levels to subSaharan Africa even though this region already receives a historically unprecedented volume of aid. This essay reviews the evidence regarding the potentially negative effects of aid dependence on state institutions, a topic which has received relatively little attention. We note several pathways through which political institutions might be adversely affected and devote particular attention to fiscal and state revenue issues. In addition to reviewing the economic literature on the aid-revenue relationship, this essay brings in the longstanding political science literature on state-building to consider the potential impact of aid dependence on the relationship between state and citizen. We conclude that states which can raise a substantial proportion of their revenues from the international community are less accountable to their citizens and under less pressure to maintain popular legitimacy. They are therefore less likely to have the incentives to cultivate and invest in effective public institutions. As a result, substantial increases in aid inflows over a sustained period could have a harmful effect on institutional development in sub-Saharan Africa.

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Section: The Aid-revenue Relationshipmentioning

confidence: 99%

An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa

Pettersson²,

2006

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“…The early development framework, in fact, emerged from modernization theories and practices in the West during the 20 th century (Radcliffe and Laurie, 2006;Gilman, 2003;Escobar, 1995;Bauer, 1976). Modernization is usually described as the transition from a traditional society into a modern one.…”

Section: Cultural Underpinnings Of Development Paradigmsmentioning

confidence: 99%

“…Often donor objectives are in conflict with local beliefs, preferences and values at particular points in time, space and context. This mismatch and neglect of country-specific circumstances leads to failures of development paradigms as documented by many scholars and practitioners (Hodler and Dreher, 2013;Coyne, 2013;Altaf, 2011;Moyo, 2009;Easterly, 2001;Escobar, 1995;Bauer, 1976).…”

Section: Introductionmentioning

confidence: 99%

“…Thus, this paper is motivated by the aid effectiveness puzzle (Doucouliagos and Paldam, 2009) and scholarly debates on culture and development (Sen, 2004;Inglehart and Baker, 2000;Bauer, 1976;Escobar, 1995). The main hypothesis of this paper is that potential effectiveness of development aid, premised upon western culture, is undermined when uniformly applied in societies with different cultures and belief systems.…”

Section: Introductionmentioning

confidence: 99%

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Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

Minasyan

2016

Journal of Comparative Economics

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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. Terms of use: Documents in Your development or mine? Effects of donor-recipient cultural differences on the aid-growth nexusAnna Minasyan* Department of Economics, University of Goettingen, Germany Abstract Development aid from the West may lead to adverse growth effects in the global South due to the neglected cultural context in the development framework. There is evidence that development agendas are mainly premised upon western thought and belief systems. Therefore, I hypothesize that the expected effect of development aid on the economic growth of recipients is impaired by cultural differences between western donors and aid recipients. I test this hypothesis empirically by augmenting an aid-growth model with proxy variables of cultural distance between donors and recipients. Namely, based on the theory of cultural transmission, I use donor-recipient weighted genetic distance, to capture vertical transmission of culture. Then, I use western education of the chief executive of the recipient country to capture horizontal transmission of culture. Results of OLS panel estimation in first differences for 1961-2010 period show that a one unit increase in donor-recipient genetic distance reduces the effect of aid on growth by 0.2 percentage points, if aid is increased by one percentage point. In turn, a one percentage point increase in aid yields, on average, 0.3 percentage point increase in growth after a decade, if the leader in power has western education.JEL classification: O111; O170; O190

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“…With today's globalized financial markets, the paradox first pointed out by P.T. Bauer (1976) is more compelling than ever -any poor country where incentives to invest are attractive does not need aid, while a poor country without incentives to invest will not have aid go into investment. The international capital market imperfections and alleged inevitability of low savings rates in poor countries have not held up well in today's world with private capital flowing into Zambian government bonds and with Chinese peasants saving far more than Americans.…”

mentioning

confidence: 99%

Was Development Assistance a Mistake?

Easterly

2007

American Economic Review

150

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Bauer, P. T., Dissent on Development: Studies and Debates in Development Economics, Cambridge, Harvard University Press, 1972, 550 pp. ($15.00)

Cited by 22 publications

References 0 publications

An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa

An Aid-Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa

Your development or mine? Effects of donor–recipient cultural differences on the aid-growth nexus

Was Development Assistance a Mistake?

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