Improving Aid Effectiveness in Aid-Dependent Countries: Lessons from Zambia

Bilateral foreign aid: How important is aid effectiveness to people for choosing countries to support?

We conduct a discrete choice experiment (DCE) to determine how important aid effectiveness is to people relative to other criteria for choosing countries to support with bilateral foreign aid. We find that aid effectiveness is important, on a par with recipient-country need as proxied by the level of hunger and malnutrition. Both criteria are more important than others.

Delivering Aid Differently—Lessons from the Field

We live in a new reality of aid. Rich countries delivered $3.2 trillion of aid to poor countries between 1960 and 2008, and aid is a $200 billion industry today. Despite disputes and upheavals , the core of the aid architecture—the set of rules governing aid flows—has changed little over the past few decades. Now the new dynamics of aid may be too strong to resist fundamental change. Delivering...

Financial aid policy: lessons from research.

In the nearly fifty years since the adoption of the Higher Education Act of 1965, financial aid programs have grown in scale, expanded in scope, and multiplied in form. As a result, financial aid has become the norm among college enrollees. Aid now flows not only to traditional college students but also to part-time students, older students, and students who never graduated from high school. To...

Post-conflict Countries: Aid Effectiveness and Permanent Peace

Aid effectiveness: Looking at the aid-social capital- growth nexus

We examine the impact of institutional quality and social capital on aid effectiveness. We find strong evidence that social capital and institutions enhance aid effectiveness. Moreover, once we account for the role of social capital and institutions, the impact of policies tend to disappear. These findings have important policy implications as they indicate that conditioning aid allocation on ‘...