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Can New Aid Modalities Handle Politics?

Are recent donor approaches compatible with a political understanding of policy processes in partner or recipient countries? This question is given increased urgency with the recent calls for and commitment to increasing financial flows, scaling-up of aid, and promoting donor coordination. Do these commitments sharpen the potential dilemma between increased aid and the political processes, and the changes that inevitably accompany this? This paper discusses the nature of the partnership enshrined in the Monterrey consensus, budget support and poverty reduction strategy papers (PRSP) approaches, and assistance directly targeted to the poor, as one way of increasing aid flows to poorest countries. It also discusses approaches to the role of aid in economic growth, and argues for better understanding of the politics of growth. The papers questions whether the current ‘institutions’ or governance paradigm brings sufficient political context to aid delivery, and discusses the relationship between domestic revenue generation and foreign aid. A concluding section draws out implications for aid delivery, and for a potential role of socio-political analysis in new aid modalities.
Publisher:
UNU-WIDER
Series:
WIDER Research Paper
Volume:
2007/63
Title:
Can New Aid Modalities Handle Politics?
Authors:
Arjan de Haan and Max Everest-Phillips
Publication date:
October 2007
ISSN Web:
1810-2611
ISBN 13 Web:
9789292300128
Copyright holder:
© UNU-WIDER
Copyright year:
2007
Keywords:
aid, donors, governance
JEL:
F35, F59, F33
Project:
Conference on 'Aid: Principles, Policies and Performance'
Sponsor:
UNU-WIDER gratefully acknowledges the financial contribution to the conference by the Finnish Ministry for Foreign Affairs. UNU-WIDER also acknowledges the financial contributions to the 2006-07 research programme by the governments of Australia (AusAID), Denmark (Royal Ministry of Foreign Affairs), Norway (Royal Ministry of Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida), and the United Kingdom (Department for International Development—DFID).
Format:
online
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