Aid and Growth: Have We Come Full Circle?

Recent literature has been pessimistic to the ability of foreign aid to foster economic growth. Aid and Growth: Have We Come Full Circle attempts to provide a balanced assessment of the recent aid-growth literature. Produced by the World Institute for Development Economics Research, the paper observes that, while aid may have very high returns at times, there is an emerging consensus that expectations surrounding the average potency of aid have been too high. The paper also delves into framing the aid-growth debate in terms of potential outcomes, taking motivation from the programme evaluation literature.

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