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UNU-WIDER WP/2012/24 Aid as a Second-Best Solution: Seven Problems of Effectiveness and How to Tackle Them

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A teenager wears torn rubber boots in a muddy local market in Bac Ha, Viet Nam. As of 2005 figures, half the world population—more than 3 billion people–is estimated to live on less than USD 2.50 a day. Bac Ha, Viet Nam. UN Photo/Kibae Park.

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WP/024 Aid as a Second-Best Solution: Seven Problems of Effectiveness and How to Tackle Them

Research and Communication on Foreign Aid
Most rich countries developed without aid, and this ‘self-development’ has some intrinsic advantages. In today’s massively unequal world, however, such an approach would imply very low levels of human development for several generations for many poor countries. Aid can therefore usefully be thought of as a necessary but ‘second-best option’. The challenge then is how to manage this second-best option, particularly in the more aid-dependent states and the more fragile environments, in order to achieve sustainable results. The study examines seven problems that can limit the effectiveness of aid, and suggests possible ways of tackling them.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/24
Title:
WP/024 Aid as a Second-Best Solution: Seven Problems of Effectiveness and How to Tackle Them
Authors:
Richard Manning
Publication date:
February 2012
ISBN 13 Web:
978-92-9230-487-4
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
aid, aid effectiveness, development
JEL:
F35
Sponsor:
This working paper has been prepared within the UNU-WIDER project ‘Foreign Aid: Research and Communication (ReCom)’, directed by Tony Addison and Finn Tarp. UNU-WIDER gratefully acknowledges specific programme contributions from the governments of Denmark (Ministry of Foreign Affairs, Danida) and Sweden (Swedish International Development Cooperation Agency—Sida) for the Research and Communication (ReCom) programme. UNU-WIDER also acknowledges core financial support to UNU-WIDER’s work programme from the governments of Finland (Ministry for Foreign Affairs), the United Kingdom (Department for International Development), and the governments of Denmark and Sweden.
Format:
online

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