Who Gets CIDA Grants? Recipient Corruption and the Effectiveness of Development Aid

Abstract

Development aid is ineffective in reducing poverty in poorly governed, highly corrupt countries. Yet Canada, whose aid allocations are based on historical precedent, rather than aid effectiveness criteria, appears to give more bilateral development aid to highly corrupt countries than to less corrupt ones. While it may be intended to reduce poverty, aid to poorly governed, corrupt countries may be ineffective or even counterproductive if it fails to recognize the reality of corruption. The Canadian International Development Agency should reassess who gets aid and for what, based on governance and corruption criteria, and aid should be focused on the poorest, least corrupt countries.

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