On Aid,Growth and Good Policies

This study provides a critical analysis of the growth regressions in Burnside and Dollar [2000]. First, we analyse the relationship between aid and government expenditure in a modified neo-classical growth model. One of the main results of the analysis is that while good policies spur growths they may at the same time reduce the effectiveness of foreign aid. Second, we show that the econometric results in Burnside and Dollar emphasising the crucial role of interaction between aid and good policies in the growth process are fragile, as they are extremely data dependent. Finally, we demonstrate that the Burnside and Dollar data lend support to the idea that the association between aid and growth can be approximated by decreasing returns to aid. This finding conforms well to regression results in other recent studies.     

The Obstacles to Foreign Aid Harmonization: Lessons from Decentralization Support in Indonesia

Relying on a new institutional economics analysis of transaction costs, the 2005 Paris Declaration on Aid Effectiveness emphasizes donor harmonization as an intermediate objective for increasing the effectiveness of foreign assistance in bringing about development outcomes. Surveys on adherence to the Paris Declaration commitments so far suggest that foreign aid donors are lagging behind targets. This paper explores the political and bureaucratic obstacles faced by bilateral and multilateral aid organizations trying to harmonize aid at the country level. Looking at foreign support for the decentralization and local governance sector in Indonesia??where a ??bold experiment?? in harmonization failed to bring about improved donor coordination??I find evidence that the lack of harmonization can be linked to some of the characteristic pathologies of foreign aid: the dominance of the strategic interests of some donors and the structure of bureaucratic incentives within aid agencies. These traditional problems work through a pathway that is underexplored in the literature: by enabling a lack of coordination among agencies within the recipient government, donors create barriers to harmonization of their own programming. However, I conclude by noting that government coordination failure may not be as much of a problem as donors make it out to be. Decisions about governance and decentralization are necessarily contentious and political. In the case where donors succeed in bringing about government coordination in the interest of their own harmonization, they risk exercising harmful leverage that leads to premature resolution of domestic policy disputes, thereby undermining the Paris Declaration principle of country ownership.     

Aid Absorption and Spending in Africa: A Panel Cointegration Approach

This article focuses on the macroeconomic management of large inflows of foreign aid. It investigates the extent to which African countries have coordinated fiscal and macroeconomic responses to aid surges. In practice, we construct a panel dataset to assess the level of aid ‘absorption’ and ‘spending’. This article departs from the recent empirical literature by utilising better measures for aid inflows and by employing cointegration analysis. The empirical short-run results indicate that, on average, Africa's low-income countries have absorbed two-thirds of (grant) aid receipts. This suggests that most of the foreign exchange provided by the aid inflows has been used to finance imports. The other third has been used to build up international reserves, perhaps to protect economies from future external shocks. In the long run, absorption increases but remains below its maximum. Moreover, we also show that aid resources have been fully spent, especially in support of public investment. There is only weak evidence that a share of aid flows have been ‘saved’. Overall, these findings suggest that the macroeconomic management of aid inflows in Africa has been significantly better than often portrayed in comparable exercises. The implication is that African countries will be able to efficiently manage a gradual scaling up in aid resources.     

Praxis and paradigms of local and expatriate workers in ‘Aidland’

This paper discusses practices and paradigms that expatriate and national humanitarian aid workers use to deal with major problems they encounter in their daily work. It views ‘Aidland’ as an arena where different actors encounter, negotiate and shape the outcome of aid. One of the main findings is that there are consistent differences in the way expatriate and national aid actors perceive problems in their field, as well as in the way they respond to these issues. The paper shows that these perceptions often translate into heterogeneous paradigms and practices between expatriate and national staff, particularly around remote control aid, partnerships and donor reporting. These findings are highly relevant in the current context of ‘localisation’, suggesting that the so-called North/South divide continues to exist and more explicit attention should be given in aid research to the heterogeneous strategies of different actors working in the aid sector. The paper is based on analysis of data derived from a multiple-round Delphi expert panel study involving 30 highly experienced humanitarian aid practitioners.     

Democracy promotion and ODA: a comparative analysis

Scholars of democracy promotion foreign aid often claim it has substantially increased, yet they shy away from explaining by how much, nor investigate comparative trends in giving. This paper attempts to fill this void by addressing the following: (1) Has democracy promotion aid increased since the end of the Cold War? (2) Has the ‘assumed’ trend of increasing aid persevered through the difficulties encountered in democratizing Iraq? (3) Did aid increase from states that supported the invasion of Iraq compared to states that did not? The author's analysis purports that the answer is yes to the first two, yet it is harder to draw conclusions regarding Iraq. Another finding, contrary to claims in the scholarly literature, in terms of percentage and overall spending, the USA gives more democracy promotion aid than the EU. The author hopes this work stimulates research into the role of democracy promotion in the Arab Spring to consider historical trends in giving.     

Motivations behind citizen aid: Norwegian initiatives in The Gambia

Abstract

Little is known about citizen aid initiatives originating in Norway, and they are not recognised as part of the official Norwegian development aid. Citizen aid initiatives are personal and small, and by themselves they do not raise large sums of money, nor do they individually have a large-scale development impact. But collectively, their influence on sponsors in Norway and on aid beneficiaries in the Global South might be substantial. Through qualitative interviews, this study explores the motivations of Norwegian founders of citizen aid initiatives, who run small development projects in The Gambia. The study finds that they are motivated by the very characteristics of these citizen aid initiatives which set them apart from formal development organisations. These include the initiatives’ small size, which allows for a personal closeness to and control over the projects. These features are often interconnected with motivations stemming from the founders’ personal experiences. The study finds that, inasmuch as the founders see the need for beneficiaries to be supported, they also experience a need to help themselves. The founders’ identities, as helpers and givers, are both formed and continually reinforced by their personal involvement in this specific type of aid work.     

The Fungibility of Health Aid: Reconsidering the Reconsidered

Lu et al. found that health aid displaces domestically-raised government health expenditure, which renders health aid at least partially fungible. These findings are questioned in The Fungibility of Health Aid Reconsidered. Van de Sijpe’s emphasis on disaggregating on- and off-budget aid is a valid contribution, although his empirical conclusions are overstated. We re-evaluate the data he criticises and find they sufficiently capture on-budget aid. To re-measure health aid fungibility, we update the Lu et al data, adding 23 countries and four years of data. Despite the confidence we have in these data, we employ two estimation specifications, each of which addresses the measurement error discussed by Van de Sijpe. The extended data and alternative methods show that development assistance for health channelled to governments remains significantly fungible.     

The ‘green militarisation’ of development aid: the European Commission and the Virunga National Park,DR Congo

To ‘save’ the Virunga National Park, located in the east of the Democratic Republic of the Congo, the European Commission (EC) allocates development aid to the paramilitary training of the park guards, their salaries, and mixed patrols of the guards together with the Congolese army. Moreover, the ‘development’ projects the EC supports around the park have militarising effects as they are based on a soft counter-insurgency approach to conservation and to address dynamics of violent conflict. This amounts to the ‘green militarisation’ of development aid. This article describes how a personalised network of policymakers within the EC renders militarised conservation-related violence and controversy around the Virunga park invisible, by framing contestations and violence in and around the park as solely caused by economic factors and motivations. Moreover, by ‘hiding’ the fact that the EC aid is used to fund armed conservation practices, policymakers circumvent political debate about the use of development funds for (para)military expenditures. While the existing literature focuses on the importance of securitised discourses to explain the militarisation of conservation, this article indicates that in addition, it is important to focus on these more mundane practices of securitisation within international organisations that ultimately fund the militarisation of conservation.     

阿拉伯海湾国家对外援助的战略、特点与影响

阿拉伯海湾援助国是新兴援助国的重要成员,在国际发展援助中的贡献与日俱增。援助国的实践服务于政治、经济与文化战略需求,与石油红利、君主制政权、历史地缘关系、伊斯兰文化的宗教属性及地区安全环境密切相关。从外交战略看,援助政策被纳入国家总体战略,在保持对战略重点区域持续投入的基础上向全球扩展,主要体现为团结援助和南南合作;从经济战略看,在全球范围内部署和循环利用石油财富,旨在加速推进国家经济多元化政策;从文化战略看,宣扬伊斯兰传统文化中慷慨施舍的精神,达到提升国家地位、塑造地区影响力之目的;从援助特点看,以王室和中央政府主导的援助政策,兼顾双边和多边的援助渠道,援助分配聚焦受援国经济与社会发展领域、积极对接国际发展合作新机制。援助不仅通过人道主义援助缓解了贫困国家的发展难题,而且彰显了其在国际发展合作中的多重作用,与中国深入践行合作共享的发展理念息息相通。     

Traditional Cleavages or a New World: Does Online Social Networking Bridge the Political Participation Divide?

There is a growing literature that examines the effects of the Internet on political participation. We seek to contribute to this literature by exploring how online social networking may stimulate online political participation. Using survey data from the Pew Internet & American Life Project, we confirm a strong positive relationship and show that this effect is driven by the level of political exchange within networks. Further, we explore the potential for the Internet to dissipate traditional cleavages in participation that tend to mirror the inequalities in the availability and use of technology. The findings suggest that while many of the “have-nots” do engage in online networking at higher rates than their counterparts, they are less likely to be exposed to political exchanges within their networks. As a result, the effect of online networking on participation is more pronounced for the “haves.” We discuss the implications of these findings.     

Much ado about nothing? The European Union and the global politics of untying aid

This article has two main purposes. The first is that of providing a longitudinal analysis of the global politics of untying aid, by looking at a number of debates that have occurred within the Development Assistance Committee and in the context of a number of high-level forums on aid effectiveness. The second is that of proposing some explanations for the lack of significant progress in these contexts. The focus is on the European Union (EU), which has been widely perceived as one of the most fervent supporters of promoting the aid untying agenda. In all these debates, the EU's leadership aspirations have remained largely unfulfilled. Thus, the EU has failed to adopt a EU-wide vision on aid untying; persuade non-EU donors to untie their aid, even when it has played the reciprocity card; and promote a pro-poor use of foreign aid, by supporting local ownership and facilitating greater access of developing country firms to aid contracts.     

NGO strategies beyond aid: Perspectives from Central and South America and the Philippines

Though unevenly spread, many developing countries are experiencing a decline in aid flows. This paper explores and compares NGDO responses in regions and countries in or entering a 'beyond-aid scenario'. The comparison shows that, despite a diversity of contexts and histories, the quest for self-sustainability has become a common and dominant concern. Within a framework of options, examples show what is being attempted in terms of NGDOs altering their resource profile and the problems they encounter in doing so. Emerging evidence suggests that NGDOs are more likely to sustain themselves if they (a) look beyond finance to adopt an integrated, capacity-based approach to sustainability and internal organisational reform and (b) put effort into making good their 'relational deficit' with a wider array of domestic constituencies.     

Colonial apologies and the problem of the transgressor speaking

Can state apologies help reconciliation between former coloniser and colonised? Much of the literature on political apologies is optimistic regarding their potential to aid reconciliation. Even critical work frequently dispraises particular case studies, while maintaining a normative commitment to apology. Building on a growing postcolonial literature on the subject, this article contributes a more fundamental critique of colonial apology. It argues that its inherent structure entails a format that accords the politician of the transgressor state an elevated speaking position. This results in the ritual being predisposed to problematic representations of the colonised and sanitised narratives of the transgression. The argument is situated within Edward Said’s considerations on representation in the colonial process.     

Aid instability as a measure of uncertainty and the positive impact of aid on growth

This article contributes to the literature on aid and economic growth. We posit that uncertainty, measured as the instability of aid receipts, will influence the relationship between aid and investment, how recipient governments respond to aid, and will capture the fact that some countries are especially vulnerable to shocks. When we account for uncertainty (which is negative and significant), we find that aid has a significant positive effect on growth, largely due to its effect on the volume of investment. The finding that uncertainty of aid receipts reduces the effectiveness of aid is robust. When the regression is estimated for the sub‐sample of African countries these findings hold, although the effectiveness of aid appears weaker than for the full sample.     

Towards Performance,Quality and Environmental Management in Local Government: the Case of Spain

The search for improvements in the management and quality of public services seems to be a constant in all public administrations, and there is an ever-increasing use of management techniques and models from the business sector. The aim of this paper is to show which management systems are being used by Spanish local governments to improve their management in terms of economy, quality and the environment. Our analysis is based on a questionnaire sent to Spanish local governments about the tools they use and the factors that influence their implementation. The results show that more efforts are necessary to implement performance measurement and total quality management, but they also show some positive aspects, such as the usefulness of performance measurement and its application to decisions in those local governments that have implemented it.     

Are There Negative Returns to Aid?

The World Bank report Assessing Aid assumes that an inflow of aid, above a certain level, starts to have negative effects. In this analysis we empirically test this assumption. We find evidence for negative returns to aid at high levels of aid inflows. However, the results are sensitive to both the countries included in the sample and model specification. Moreover, the turning-point above which aid starts to have a negative effect on growth seems to be much higher than assumed in the background calculations for Assessing Aid.     

Can there be mercy without the merciful? A meditation on Martha Nussbaum’s questions

Martha Nussbaum raised profound concerns about aid as being conceived out of the self-directed charity of donors and not the expressed concerns of those being aided. Even when the recipients of aid seek to express their concerns, their capabilities may not recognise their own conditions and desirable remedies. This paper agrees that Nussbaum’s questions are profound, but argues that even they do not go far enough.     

Co-opting Good Governance Reform: The Rise of a Not-so-Reformist Leader in Kebumen,Central Java

Challenging the existing literature, which tends to downplay the impact of good governance reform in post-Suharto Indonesia, the article suggests that greater intervention by international donors, combined with the process of decentralisation, has influenced the dynamics of political competition at the local level. It suggests that the increasing availability of international aid has provided local elites with an option to engage in a new form of patronage politics that relies less on old instruments, such as money politics and violence. By selectively committing themselves to good governance reform, Indonesian local elites can now seek a new source of power in the form of support from international donors, with which they can raise their profiles as ‘reformists’ and consolidate power, only to engage in familiar, if less blatant, forms of patronage politics. The article highlights such a dimension of local politics with reference to the case of Kebumen's former regent, Rustriningsih.     

The aid orphan myth

The term ‘aid orphan’ refers to a developing country forgotten or abandoned by the development community. This metaphor has featured prominently in the development assistance policy and research literature over the past decade. Development practitioners, policy makers and researchers have defined aid orphans in manifold ways and often expressed concern over the potential fate or impact of such countries. In this paper we first examine the many definitions of aid orphans and then review the main concerns raised about them. Next we empirically examine more than 40 years of bilateral aid data to identify aid orphan countries and their common characteristics. Our findings suggest that very few countries meet the definition of aid orphan and fewer still raise the concerns collectively expressed about the orphan phenomenon. We conclude by suggesting researchers and practitioners abandon the orphan metaphor and instead focus on issues of equitable aid allocation.     

AGENTS OF INFLUENCE: COUNTRY DIRECTORS AT THE WORLD BANK

This article seeks to understand the operations of the World Bank by examining one particular group of players—the country directors (CDs). It argues that the analysis of international organizations (IOs), by focusing on the behaviour of their principals (states), as principal-agent analysts do, or on organizational cultures, as the constructivist approach does, is inadequate in explaining the operation and behaviour of IOs, which are themselves complex organizations with chains of cascading relationships. Country directors at the World Bank occupy a pivotal position in this chain: with executive directors and the president as their nominal and ultimate principals, vice presidents as their direct principals and client countries as informal principals. They are themselves principals to their country team and to some sector people. For both conceptual and empirical reasons, therefore, CDs deserve separate analysis. To explain the way these relationships shape the work CDs do and how they do it, this article examines three basic functions of country directors at the Bank: (1) representing the Bank to the client countries; (2) representing the country to the Bank; and (3) managing the country offices and country programmes. The empirical section of this article is based on interviews with over 80 officials in both Washington and field offices. We show that an understanding of the Bank and its operations requires an examination of its internal processes and its staff.