The Rise and Fall of Development Aid

Abstract

With the end of the cold war, the military prerogatives that motivate aid have clearly diminished in importance. However, other political and strategic considerations remain prominent in deciding the direction and content of development assistance. This paper re-examines the rationale for aid that accompanied its inception; revisits the development debate that accompanied its growth; and draws conclusions for aids' performance which may influence the future. The paper finds that the motivations for aid have changed quite radically, particularly in the 1990s, providing a new basis for future cooperation. The final section of the paper, describes briefly some of the areas which offer the most promising potential for an expansion of a development partnership. The role of the 'new* aid will be to facilitate and catalyse these areas of cooperation.

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