The New Aid Environment

11 Pages Posted: 30 Jan 2008

Date Written: January 1, 2008


Author discusses the various problems identified in international development aid and focuses on the distinction between government aid and the role played by the private sector.

Gestsson claims, Globalization empowers multilateral organizations and, in turn, forces individual nations to relinquish some of their control over international affairs for the sake of a global-community. Today, the decision-making power possessed by individual nations within the aid environment has given politicians the opportunity to manipulate the language of universal human rights as a means to justify their pursuit of personal or domestic gain. To improve the efficacy of the global-effort to promote and secure universal values of freedom, it is imperative to redefine the role played by national governments in the aid environment.

Gestsson believes that the private sector's growth, complemented with advanced ICT, offers the world an opportunity to transform the aid environment so as to limit both inefficiency and corruption. This is supported with his discussion on:

- Hudson's The 2007 Index of Global Philanthropy - Cato's Does Foreign Aid Help? - Wenar's Accountability in International Development Aid - Banerjee's Making Aid Work

In the end, Gestsson suggests how the advancing ICT may be employed so as to achieve the set objectives of more effectiveness.

Keywords: aid, development, human right, international, accountability, effectiveness, ICT, aidmarket, private sector, government aid, remittances

JEL Classification: G38, H53, H77, I32, O19, O31, O33, O38, P11, P21

Suggested Citation

Gestsson, Thorsteinn Hjalmar, The New Aid Environment (January 1, 2008). Available at SSRN: or

Thorsteinn Hjalmar Gestsson (Contact Author)

affiliation not provided to SSRN ( email )

No Address Available

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