Download This PaperWhat Can Aid Do?
7 Pages Posted: 7 May 2013
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What Can Aid Do?
Date Written: September 6, 2009
Abstract
Foreign aid’s advocates claim aid has been successful. Aid’s critics claim aid has failed. We explain why both camps are correct. Aid can, and in a few cases has, increased a particular output by devoting more resources to its production. In this sense, aid has occasionally had limited success. However, aid cannot, and has not, contributed to the solution of economic problems and therefore economic growth. In this much more important sense, aid has failed.
Keywords: US foreign aid, foreign assistance effectiveness, economic development in Africa
JEL Classification: F35, O11, O12
Suggested Citation: Suggested Citation
Peter T. Leeson
George Mason University - Department of Economics ( email )
4400 University Drive
Fairfax, VA 22030
United States
HOME PAGE: http://www.peterleeson.com
George Mason University - Mercatus Center ( email )
3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States