POLI 101 Lecture Notes - Lecture 9: Sub-Saharan Africa, Official Development Assistance, Against Malaria Foundation
Document Summary
Oda: flow of official financing to the developing world that is concessional in character namely grants and loans. While foreign aid has grown, the gdp of sub-saharan africa remained the same or even went down. Abuzeid says that the high intensity of aid results in a lower standard of governance. Mechanisms: evidence suggests that aid makes worse currently standing corruption mechanisms. Creating multiple distortions in the public sector. Foster the emergence of a rentier state effect. Delay pressures for effective reform: foreign aid can perpetuate existing corruption. Countries tend to give more to their former colonies (if they have them) Poorer countries have worse governments and thus get more aid usually: foreign aid creates multiple distortions to the public sector. Aid indirectly harms governance by inducing an increase in size of the government sector which in turn provides increased opportunity for corruption. Foreign aid often used by leaders with short time horizons.
