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Obstacles to progress

Distortions

While most of this aid was distributed bilaterally (directly from donor countries to
recipientcountries, or to multilateral organizations with donor-imposed restrictions on its

use), US$42.6 billion (31%) went to multilateral organizations without any use
restrictions and was distributed as multilateral ODA. This share of multilateral ODA has
been largely consistent since at least 1998 (OECD, 2015).

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Findings suggest that differences between countries and regions, time periods, aid
objectives, and individual donor organizations all may influence the effectiveness of aid
delivered bilaterally and multilaterally. We find, however, no consistent evidence that

either bilateral or multilateral aid is more effective overall. “
"Relative Effectiveness of Bilateral and Multilateral Aid on Development Outcomes." 327
Biscaye, Pierre E., Travis W. Reynolds, and C. Leigh Anderson.
Review of Development Economics 21, no. 4 (2017): 1425–47.

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Aid & Economic Development
“ Economic development, the process whereby simple, low-income national economies

are transformed into modern industrial economies. Although the term is sometimes used
as a synonym for economic growth, generally it is employed to describe a change in a

country's economy involving qualitative as well as quantitative improvements. “
"Economic Development - Economic Development as an Objective of Policy." 328
Encyclopedia Britannica.

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"Remember, aid cannot achieve the end of poverty. Only homegrown development

based on the dynamism of individuals and firms in free markets can do that."
"The White Man's Burden: 329
Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good"
William Easterly

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“ Our evidence shows that, overall, Foreign Aid increases economic growth among poor
countries where aid is a large source of funding. “

"The Effect of Aid on Growth: Evidence from a Quasi-Experiment." 330
VoxEU.Org (blog), April 30, 2016.
Galiani, Sebastian, Stephen Knack, Lixin Colin Xu, and Ben Zou.

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