Improving Aid Effectiveness in Aid-Dependent Countries: Lessons from Zambia

Centre d’Economie de la Sorbonne Working Paper No. 2011.40

32 Pages Posted: 24 Jul 2011

Date Written: July 21, 2011

Abstract

Zambia was a middle-income country when it achieved independence from Great Britain in 1964. After decades of international aid Zambia has become a low-income country, and its per capita GDP is only now returning to the levels it had reached over forty years ago. While aid is far from the only variable at work in Zambia’s development, its impact has been questionable. This paper examines the issue of aid effectiveness in Zambia, especially in terms of how the incentive structure faced by donors may lead to decreased accountability and inadequate concern for long-term outcomes, rendering aid less beneficial. The paper concludes by proposing a revised approach to the provision and use of international aid in Zambia, as well as in other aid-dependent countries in Sub-Saharan Africa.

Keywords: aid effectiveness, Zambia, donors, projects, aid incentives

JEL Classification: F35, 019, 022, 055

Suggested Citation

Beuran, Monica and Raballand, Gael and Revilla, Julio E., Improving Aid Effectiveness in Aid-Dependent Countries: Lessons from Zambia (July 21, 2011). Centre d’Economie de la Sorbonne Working Paper No. 2011.40. Available at SSRN: https://ssrn.com/abstract=1893704 or http://dx.doi.org/10.2139/ssrn.1893704

Monica Beuran

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Gael Raballand (Contact Author)

World Bank ( email )

1818 H street N.W.
Washington, DC 20433
United States

Julio E. Revilla

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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