•Multiple objectives often work against each other and weaken each other, so that aid may end up serving none of its multiple goals especially well. •The governments of the poor countries, through which the aid is directed, often have little incentive to raise the productive potential of the poor, especially when doing so might engender political activism that threatens the current political elite. •The aid agencies themselves in this difficult environment do not have much incentive to achieve results, since the results are mostly unobservable 19.2Ways to improve the success of foreign aid projects •Conditionality oAid agencies often place conditions on loans and aid oThese conditions typically include macroeconomic stability (low-budget odeficits and inflation), noninterference with market pricing, privatization of stateowned enterprises and openness to international trade. oHowever, the agencies then often provide additional future loans with little regard for the performance on previous loans. oA common reason for aid to be given even after conditions are violated is that with high political instability, a new government took power and was given a clean slate by the aid agencies. oBut there are a number of cases where aid was given repeatedly even to the same government in the same country. othe fundamental problem remains that both the success of past aid to follow conditions and the failure of past aid to follow conditions are both taken as justifications for future aid. •Evaluation oDespite the potential benefits of learning from past experience, aid agencies seem reluctant to promote honest evaluations that could lead to publicity about failures. oAid agencies typically give low priority to evaluating projects after completion. oThe World Bank reviews only 5 percent of its loans after three to ten years following the last disbursement for development impact oEven these evaluations are based in part on self-evaluations by the staff in charge of the original projects and their implementing agencies, are done on a paltry budget, and are often sanitized as they are reviewed by management oIncreasing evaluation of the aid agencies need not be especially costly. In some cases, it may involve little more than specifying concrete and measurable objectives (not the dispersal of money) in advance. In other cases, case study information can be made available to outside scholars 19.3Realistic Vision •Aid agencies should set more modest objectives than expecting aid to "launch the takeoff into self-sustained growth. •The goal of having the high-income people make some kind of transfer to very poor people remains a worthy one, despite the disappointments of the past. •But the appropriate goal of foreign aid is neither to move as much money as politically possible, nor to foster societywide transformation from poverty to wealth.
As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
KiranTemple University Fox School of Business ‘17, Course Hero Intern
I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.
DanaUniversity of Pennsylvania ‘17, Course Hero Intern
The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.
JillTulane University ‘16, Course Hero Intern
Stuck? We have tutors online 24/7 who can help you get unstuck.
Ask Expert Tutors
You can ask
You can ask
You can ask
(will expire )