Economics of Foreign Aid and Self-Sustaining Development

摘要

Successful economic development in the last 30 years has been characterized by LDC government policies that are outward-oriented and provide free market incentives. So concludes this study of the effectiveness of foreign aid in promoting economic growth in developing countries. The paper first examines the history of development theories and assistance, the rationale for aid, and the emergence of outward-looking policies for growth. Next, the shift in emphasis by development economists and foreign aid practitioners from stimulating growth to meeting basic human needs is discussed, with the two objectives judged to be compatible. Forms of aid and conditions under which it is given are considered and the effectiveness of concessionary aid in promoting self-sustaining economic growth is assessed. Empirical evidence on the effects of A.I.D. and other concessionary assistance projects is also provided.