Reassessing the aid-policy-growth relationship: A new approach
- From
-
Published on
09.07.18
- Impact Area

Can foreign aid be effective only if countries have sound fiscal, monetary, and trade policies in place?
This question has been the subject of heated debates for decades. The predominant view in the donor community and in academic circles has been that foreign aid can only be effective in promoting growth and development in contexts where governments have committed to maintaining a “sound” policy environment of low budget deficits, low inflation, and openness to trade. This notion was supported by an oft-cited 2000 paper by Burnside and Dollar in American Economic Review. However, subsequent research has suggested that those findings were strongly sensitive to sample selection bias (in terms of country and period coverage) and model specification—casting doubt on the prevailing conventional wisdom.
Photo credit: Chosa Mweemba/WorldFish
Related news
-
Boosting investment in fertilizer and soil health in Liberia
Sehlule Muzata30.09.25-
Food security
-
Gender equality
Through partnership, the Fertilizer and Soil Health Hub for West Africa and the Sahel is…
Read more -
-
Ponds of Promise: Unlocking Mandla’s Farm Ponds for Food and Livelihood Security
Multifunctional Landscapes Science Program29.09.25-
Adaptation
-
Biodiversity
-
Environmental health
-
Environmental health & biodiversity
-
Food security
-
Nutrition
-
Poverty reduction, livelihoods & jobs
Ponds as a Lifeline in Mandla Mandla, in central India, is a land of contrasts,…
Read more -
-
Building Bridges for Resilient Landscapes – MFL Collaboration with Zim AEKN
Multifunctional Landscapes Science Program29.09.25-
Biodiversity
-
Environmental health
-
Environmental health & biodiversity
-
Food security
-
Gender equality
Reflections on “Deepening the Development of the Zimbabwe Agroecology Knowledge Network (Zim AEKN)…
Read more -