The Dynamics of Socio-Economic Development

by Adam Szirmai,  www.dynamicsofdevelopment.com

 

 

 

CHAPTER 14: Foreign Aid and Development

This concluding chapter focuses on the role of foreign aid in development. It argues that under certain conditions foreign aid may contribute to an acceleration of growth and development, but in itself cannot transform processes of stagnation into dynamic processes of development.


Until the 1990s, the desirability of development aid was not questioned in the political debate. Although there has been a lively debate on the effectiveness of aid flows, development aid was supported by political parties across the political spectrum and by the general public. In the early 1990s the consensus started to unravel. This manifested itself in a substantial decline in the real value of aid flows and a renewed urgency of the debates on the desirability and effectiveness of aid. Subsequently, the real value of global aid flows recovered increasing to twice its 2000 level by 2011.


This chapter presents the theoretical underpinnings of aid and analyses the arguments of proponents and critics of aid.


The chapter contains seven tables with detailed statistics on aid flows by country and region.

List of Tables

 

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14.1: Net receipts of development assistance by income level and region, 1960-2012

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14.2: Distribution of net official development assistance by region, 1960-2012

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14.3: Country contributions to aid, 1960-2012

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14.4: Net development aid as a percentage of the total net inflow of financial resources, 1960-2012

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14.5: Net official development assistance, remittances and net total resource flows, 1975-2012, title changed

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14.6: Sectoral allocation of aid, 1967-2012

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14.7: Net development assistance as a percentage of gross domestic product, 1960-2012

 

 

 

copyright 2004: Adam Szirmai - design: Rik Luiten - last update: 03/02/2015