Arbeitspapier

The questionable economics of development assistance in Africa: hot-fresh evidence, 1996-2010

This paper assesses the aid-development nexus in 52 African countries using updated data (1996-2010) and a new indicator of human development (adjusted for inequality). The effects of Total Net Official Development Assistance (NODA), NODA from the Development Assistance Committee (DAC) and NODA from Multilateral donors on economic prosperity (at national and per capita levels) are also examined. The findings broadly indicate that development assistance is detrimental to GDP growth, GDP per capita growth and inequality adjusted human development. The magnitude of negativity (which is consistent across specifications and development dynamics) is highest for NODA from Multilateral donors, followed by NODA from DAC countries. Given concerns on the achievement of the MDGs, the relevance of these results point to the deficiency of foreign aid as a sustainable cure to poverty in Africa. Though the stated intents or purposes of aid are socio-economic, the actual impact from the findings negates this. It is a momentous epoque to solve the second tragedy of foreign aid; it is 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 care about the poor to hold aid agencies accountable for piecemeal results. Policy implications and caveats are discussed.

Sprache
Englisch

Erschienen in
Series: AGDI Working Paper ; No. WP/14/020

Klassifikation
Wirtschaft
History of Economic Thought since 1925: General
Foreign Aid
International Relations, National Security, and International Political Economy: General
Economic Development: General
Economywide Country Studies: Africa
Thema
Foreign Aid
Political Economy
Development
Africa

Ereignis
Geistige Schöpfung
(wer)
Asongu, Simplice A.
Ereignis
Veröffentlichung
(wer)
African Governance and Development Institute (AGDI)
(wo)
Yaoundé
(wann)
2014

Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Asongu, Simplice A.
  • African Governance and Development Institute (AGDI)

Entstanden

  • 2014

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