The developmental effectiveness of aid to Africa

Abstract

The principal aim of this paper is to examine the developmental effectiveness of aid to Sub-saharan Africa (SSA). The author uses an informal analytical framework to accomplish this. The framework provides a production-type equation for determining income growth and conveys that : 1) there are many influences besides aid on country economic performance; 2) domestic policies have a pervasive influence on the whole system; and 3) aid has an important influence in raising import and investment capacity. The author presents evidence on aid in Africa that suggests that the high past levels of aid have been unable tp prevent serious economic deterioration and that its effectiveness is considerably less than in other regions. Nor have donors been able to offer much assistance in African governments'design of development strategies. Case studies of Cote d'Ivoire and Ghana support the conclusion that there is much room for increasing the effectiveness of aid to SSA. The report suggests that the problem of aid effectiveness is not technocratic nor due to a shortage of advice. Rather, politics lies at the heart of the problem. It is for the people of Africa to resolve their governance problems - and there are potentially important stirrings of political change. And although donors have to work with existing governments, they should be more selective in those they aid.

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