Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331878 
Year of Publication: 
2025
Series/Report no.: 
Kiel Working Paper No. 2305
Publisher: 
Kiel Institute for the World Economy (IfW Kiel), Kiel
Abstract: 
We review the literature on the political economy of foreign aid, examining the geopolitical returns generated by Official Development Assistance (ODA). Our paper identifies conditions under which donors are able to influence political and economic outcomes in recipient countries, shape their behavior in global affairs, and adjust to domestic and international challenges. First, we introduce our paper and outline the structure of our review. Second, we examine how the international system influences foreign aid motivations. Third, we discuss the literature on aid-giving practices and their geopolitical effects. Fourth, we explore the relationship between aid and international organizations. Fifth, we identify key challenges to the traditional aid architecture. Sixth, building on an emerging body of research in international development finance, we propose future directions for the study of ODA in a contested global landscape. Finally, we conclude by summarizing the main insights from our review.
Subjects: 
foreign aid
geopolitics
foreign policy
development
international organizations
development finance
aid effectiveness
JEL: 
F35
O19
P45
Document Type: 
Working Paper

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