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dc.contributor.authorAuty, Richard M.en_US
dc.date.accessioned2012-09-21T09:31:41Z-
dc.date.available2012-09-21T09:31:41Z-
dc.date.issued2007en_US
dc.identifier.isbn9291909785=978-92-9190-978-0en_US
dc.identifier.urihttp://hdl.handle.net/10419/63391-
dc.description.abstractThis paper conceptualises foreign aid as a geopolitical form of rent in order to help distinguish the conditions under which aid is detrimental to sustained economic recovery from those where it is beneficial. Foreign aid shares with natural resource rent and contrived (i.e., government monopoly) rent the property of being a large revenue stream that is detached from the economic activity that generates it, and elicits political contests for its capture. Rent-driven models suggest such contests have two adverse effects: (i) they deflect government incentives into rent-channelling at the expense of promoting wealth creation; and (ii) the resulting political allocation of the rent distorts the economy and precipitates a growth collapse, which is protracted. In this context, the three principal causes of aid failure identified in the literature (corruption, a poor policy environment and Dutch disease effects) are all symptoms of the destabilizing impact of rent streams on immature political economies. Consequently, the deployment of foreign aid to revive collapsed economies runs the risk of perpetuating rent-seeking and thereby postponing essential economic restructuring. This paper compares the varied impacts of aid on the development trajectories of Mauritania, Kenya and Mozambique. It argues that successful aid deployment requires: recognition that aid modalities differentiate aid’s effectiveness; stronger public accountability; and the construction of a cohesive pro-reform political constituency. The paper proposes a dual track strategy as a politically practical means of deploying geopolitical rent to restructure distorted economies. – Africa ; aid ; rent ; resource curse ; economic developmenten_US
dc.language.isoengen_US
dc.publisherUNU-WIDER Helsinkien_US
dc.relation.ispartofseriesResearch Paper, UNU-WIDER, United Nations University (UNU) 2007/35en_US
dc.subject.jelH53en_US
dc.subject.jelO19en_US
dc.subject.jelO55en_US
dc.subject.ddc330en_US
dc.subject.stwEntwicklungshilfeen_US
dc.subject.stwRententheorieen_US
dc.subject.stwWirtschaftswachstumen_US
dc.subject.stwMauretanienen_US
dc.subject.stwKeniaen_US
dc.subject.stwMosambiken_US
dc.titleAid and rent-driven growth: Mauritania, Kenya and Mozambique compareden_US
dc.typeWorking Paperen_US
dc.identifier.ppn537383719en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:WIDER Research Papers, United Nations University (UNU)

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