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It is becoming increasingly evident that the existence together, in a diminishing world, of rich nations and very poor nations, is the critical problem of our time; and indeed other questions of international relations are rapidly taking on the appearance of being merely aspects of this central crux. According to some authorities it may only be a matter of a few years before the food and population question takes on such alarming proportions as to make our present troubles on the international scene seem slight by comparison. It is only against this background that we can fully appreciate the significance of the United Nations institutions and procedures for the mediation of aid, whether financial or technical, to developing coun tries; and indeed also for the flow of credit and skills between countries generally, for few nations or none belong wholly to one side in this matter, and the whole question is one that vitally affects the immediate futures of every one of the members of the international community.
First published in 1971, this reissue considers the main aspects of foreign aid to developing countries in terms of economic concepts and principles. The author gives an economic definition of aid and considers the motives for giving aid and the principles on which it may be allocated. He looks at the effect on the economic growth of developing countries of both the aid given and the need to repay the debt, and the effect on trade patterns and resource allocation of tying aid to one particular project, or one source of goods. While economic analysis is only a first step in providing a basis for policy decisions on foreign aid, Dr Healey shows that many issues can be clarified by looking at them from the economists’ point of view.
Debunking the current model of international aid promoted by both Hollywood celebrities and policy makers, Moyo offers a bold new road map for financing development of the world's poorest countries.
Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.
Economic aid to developing countries is an important—and often controversial—part of foreign policy for many Western nations. But how effective is such aid in achieving the objectives of the giver and the recipient? In this important study, Paul Mosley offers a challenging reassessment of the role of economic aid for nations on both sides of the equation. Mosley examines in detail the foreign aid programs of the leading Western powers with particular regard to the role of aid in international politics, and then examines the effectiveness of aid as a subsidy to exports, as an instrument of development, and as a means of redistributing income and bargaining power to the very poor. Mosley also incorporates overseas aid into the general economic theory of public expenditure. He examines the various protagonists on the supply side of the market for aid expenditures and in particular those on the demand side. Supporting this analysis of ways in which the aid market adjusts over time are extensive data from the OECD countries for the past thirty years. With its searching assessment of the effectiveness of foreign aid as an instrument of dogmatic and economic policy, Mosley's new book will be essential reading for all students in the field of international relations.