Publication

This paper explores trends in and motivations for aid, and the impacts and debates about reforming aid. The paper also examines the empirical evidence on the relationship between aid and growth, which is divided between research that finds no relationship and research that finds a positive relationship. The author also looks at the key challenges in making aid more effective, including the principal-agent problem and the related issue of conditionality and concludes by examining some of the main proposals for improving aid effectiveness.