The Political Economy of Development Assistance: Peril to Government Quality Dynamics in Africa
African Governance and Development Institute WP/12/008
35 Pages Posted: 10 Sep 2014
Date Written: February 8, 2012
This paper assesses the effectiveness of foreign aid in improving government institutions in 52 African countries using updated data (1996-2010). Findings suggest development assistance deteriorates government quality dynamics of corruption-control, political-stability, rule of law, regulation quality, voice and accountability and government effectiveness. It is therefore a momentous epoque to solve the second tragedy of foreign aid; high time economists and policy makers start rethinking the models and theories on which foreign aid is based. In the meantime, it is up to people who really care about the poor to hold aid agencies accountable for results.
Keywords: Foreign Aid; Political Economy; Development; Africa
JEL Classification: B20; F35; F50; O10; O55
Suggested Citation: Suggested Citation