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The Samaritan's Dilemma - The Political Economy of Development Aid (Hardcover, New)
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The Samaritan's Dilemma - The Political Economy of Development Aid (Hardcover, New)
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What's wrong with foreign aid? Many policymakers, aid
practitioners, and scholars have called into question its ability
to increase economic growth, alleviate poverty, or promote social
development. At the macro level, only tenuous links between
development aid and improved living conditions have been found. At
the micro level, only a few programs outlast donor support and even
fewer appear to achieve lasting improvements. The authors of this
book argue that much of aid's failure is related to the
institutions that structure its delivery. These institutions govern
the complex relationships between the main actors in the aid
delivery system and often generate a series of perverse incentives
that promote inefficient and unsustainable outcomes. In their
analysis, the authors apply the theoretical insights of the new
institutional economics to several settings. First, they
investigate the institutions of Sida, the Swedish aid agency, to
analyze how that aid agency's institutions can produce incentives
inimical to desired outcomes, contrary to the desires of its own
staff. Second, the authors use cases from India, a country with low
aid dependence, and Zambia, a country with high aid dependence, to
explore how institutions on the ground in recipient countries also
mediate the effectiveness of aid. Throughout the book, the authors
offer suggestions about how to improve aid's effectiveness. These
suggestions include how to structure evaluations in order to
improve outcomes, how to employ agency staff to gain from their
on-the-ground experience, and how to engage stakeholders as
"owners" in the design, resource mobilization, learning, and
evaluation processes of development assistance programs.
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