Publication

This paper gives a brief overview of some literature on the unintended effects of aid. It touches upon issues such as Dutch disease symptoms, fungibility, corruption and rent seeking, and various social effects, and discusses the question of absorption capacity and the role of donors and donor conditionalities. Many of the negative effects associated with development aid are connected to the ways in which aid is administered and disbursed, and therefore some of those negative effects may be minimized if donors adjust their approaches.