Where Does the Money Go? Best and Worst Practices in Foreign Aid

Journal of Economic Perspectives, Volume 22, Number 2, Spring 2008

36 Pages Posted: 26 May 2012

See all articles by William Easterly

William Easterly

New York University - Department of Economics

Tobias Pfutze

affiliation not provided to SSRN

Date Written: 2008

Abstract

Foreign aid from official sources to developing countries (excluding private aid) amounted to $103.6 billion in 2006 and has amounted to over $2.3 trillion (measured in 2006 dollars) over the past 50 years. There have been fierce debates over how effective this aid has been or could be in the future (for example, Sachs, 2005; Easterly, 2006). However, this paper does not address the already ubiquitous issue of aid effectiveness — that is, the extent to which foreign aid dollars actually achieve their goals of reducing poverty, malnutrition, disease, and death. Instead, this paper focuses on “best practices” in the way in which official aid is given, which is an important component of the wider debate.

Suggested Citation

Easterly, William and Pfutze, Tobias, Where Does the Money Go? Best and Worst Practices in Foreign Aid (2008). Journal of Economic Perspectives, Volume 22, Number 2, Spring 2008. Available at SSRN: https://ssrn.com/abstract=2066841

William Easterly (Contact Author)

New York University - Department of Economics ( email )

269 Mercer Street
New York, NY 10003
United States

Tobias Pfutze

affiliation not provided to SSRN ( email )

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