In Mozambique donors have shifted focus from project aid to budget support in an effort to reform the public sector and ‘justice, legality and public order’.
Results
Economic aid helps countries transition to democracy but it is democracy aid which encourages consolidation.
While foreign aid has a positive impact on some aspects of Benin’s democracy it has failed to adequately enhance good governance, the rule of law, and accountability.
Is it the case that while aid is effective at the micro level, it cannot be shown to have a positive impact on growth?
Mekasha and Tarp challenge the conclusion of Doucouliagos and Paldam’s 2008 meta-analysis of the aid-growth literature by reassessing both the methodology and the data used.
Research increasingly shows that aid disbursements have had positive effects on the economies of recipient countries.
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