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Development Aid

“Izandla ziyagezana” - “Hands Wash Each Other”

Finally, the U.N. finding may actually be further evidence of U.S. influence: UNICEF, an
organization over which the United States has historically had great control, seems to be

driving the increase in U.N. aid “
"How Much Is a Seat on the Security Council Worth? 443
Foreign Aid and Bribery at the United Nations."
Kuziemko, Ilyana, and Eric Werker.
Journal of Political Economy 114, no. 5 (October 2006):

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Aid Effectiveness

“ As recognized by the OECD's Working Party on Aid Effectiveness, at the beginning of the
21st century it became apparent that promoting widespread and sustainable
development was not only about amounts of aid given, but also about how aid was given

Aid flows have significantly increased over the last decade, but at the same time aid has
become increasingly fragmented. There has been an explosion in the number of donors,

and while the number of projects has multiplied, their average size has dropped. Small
projects being often limited in size, scope and duration, they result in little lasting benefit
beyond the immediate effect.

With more players, aid has become less predictable, less transparent and more volatile “
"Aid Effectiveness." 444
Wikipedia,
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“ In panel growth regressions for 56 developing countries and six four-year periods (1970-
93) the policies that have a large effect on growth are fiscal surplus, inflation, and trade

openness. We construct an index of these three policies, interact it with foreign aid, and
instrument for both aid and aid interacted with policies. We find that aid has a positive
impact on growth in developing countries with good fiscal, monetary, and trade policies.

In the presence of poor policies, on the other hand, aid has no positive effect on growth.
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We examine the determinants of policy and find no evidence that aid has systematically
affected policies - either for good for ill. We estimate an aid allocation equation and show

that any tendency for aid to reward good policies has been overwhelmed by donors'
pursuit of their own strategic

interests. In a counter-factual we reallocate aid, reducing the role of donor interests and
increasing the importance of policy: such a reallocation would have a large, positive
effect on developing countries' growth rates

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