The Samaritans Dilemma: The Political Economy of Development Aid

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In the last decade, global challenges like climate change or the fight against epidemics have become the focus of aid projects. In order to make progress on these large-scale issues, donor nations increasingly recognize that simply giving money to a developing region does not ensure success.

The Samaritan's Dilemma: The Political Economy of Development Aid

Instead, the impact of aid spending depends crucially on efforts undertaken in the partner countries. The crucial question for aid giving countries therefore remains how to strategically structure aid, so that recipient governments can be incentivized to cooperate also on intangible or non-enforceable conditions. Indeed, the theoretical literature on aid conditionality finds that optimal contracts should be self-enforcing, i. That, however, might be easier said than done: Svensson argues that the threat of cutting aid in case conditions are violated is hard to credibly sustain, at least for individual donor countries.

They often face political constraints to spend a certain amount of money on aid. This opens the possibility for a classic hold-up problem: If the donor country cannot commit to giving aid only conditional on reform efforts, the recipient country, knowing it will receive assistance in any case, has no incentive to implement costly reforms. There is, however, no a priori reason to think that multilateral organizations have a different objective than individual donor countries in terms of eliminating poverty and achieving growth and prosperity for developing countries.


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In a new study, Simon and Valasek argue that precisely this stage of preference aggregation enables multilateral organizations to better implement aid conditionality. How non-earmarked funds given to multilateral organizations are allocated is determined in a bargaining process between representatives of the different donating nations. And your car is very comfortable with good safety features, good interior design, less maintenance, less service It then goes on to explain why the second instinct is wrong, thus: "When a parenthetical element — an interjection, adverbial modifier, or even an adverbial clause — follows a coordinating conjunction used to connect two independent clauses, we do not put a comma in front of the parenthetical element.

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Samaritan's dilemma

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Mark McQuinn: Political Economy of Aid & Good Governance

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    • The Samaritan's Dilemma: The Political Economy of Development Aid.
    • The Samaritan's Dilemma: The Political Economy of Development Aid.
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      More Contact us Publish with us Subscribe. Print Save Cite Email Share. Mak Arvin and Byron Lew It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries — as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances.

      Several contributions provide new analytical insights or empirical evidence on different aspects of aid. As a whole, the book demonstrate how researchers have dealt with increasingly complex issues over time — both theoretical and empirical — on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion.

      Chapter 9: Inter-linkages of foreign aid and trade policy in trade-theoretic frameworks Chapter Aid for trade: assessing the effects on recipient exports of manufactures and primary commodities to donors and non-donors Chapter Aid for trade: the case of Asia and Oceania nations Chapter The trade effects of foreign aid: an empirical perspective Chapter Foreign aid, international trade, and financial crises: a developing country perspective Chapter The macroeconomic impact of aid in recipient countries: old wine in new bottles?

      Chapter Foreign aid, economic growth, FDI, and trade openness in lower middle-income countries: a dynamic panel data analysis Chapter Informal influence on multilateral lending: the case of the Inter-American Development Bank Chapter Donors helping themselves Chapter Aid and corruption: an incentive problem Chapter The evolving debate of the effect of foreign aid on corruption and institutions in Africa Chapter Finally a breakthrough?

      The recent rise in the size of the estimates of aid effectiveness Chapter On the heterogeneous impact of aid on growth: a review of the evidence Chapter Aid, growth, policies and fragility Chapter Does real exchange rate appreciation undermine aid effectiveness?



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