Suchergebnisse

The notion that foreign aid and foreign direct investment (FDI) are complementary sources of capital is conventional among governments and international cooperation agencies. This paper argues that the notion is incomplete. Within the framework of an open economy Solow model we show that the theoretical relationship between foreign aid and FDI is indeterminate. Aid may raise the marginal productivity of capital by financing complementary inputs, such as public infrastructure projects and human capital investment. However, aid may also crowd out productive private investments if it comes in the shape of physical capital transfers. We therefore turn to an empirical analysis of the relationship between FDI and disaggregated aid flows. Our results strongly support the hypotheses that aid invested in complementary inputs draws in foreign capital while aid invested in physical capital crowds out FDI. The combined effect of these two types of aid is small but on average positive

Contents: The reparations problem and the Bank for international settlements, by L. T. McFadden; International financial co-öperation as a factor in world peace, by Virgil Jordan; Benefits and dangers of foreign investments, by F. C. James.

Intro -- FOREIGN AID: ANALYSES OF EFFICIENCY, EFFECTIVENESS AND DONOR COORDINATION -- FOREIGN AID: ANALYSES OF EFFICIENCY, EFFECTIVENESS AND DONOR COORDINATION -- CONTENTS -- PREFACE -- Chapter 1 DOES FOREIGN AID WORK? EFFORTS TO EVALUATE U.S. FOREIGN ASSISTANCE -- SUMMARY -- INTRODUCTION -- DOES AID WORK? A BRIEF SUMMARY -- IMPACT AND PERFORMANCE EVALUATIONS -- HISTORY OF U.S. FOREIGN ASSISTANCE EVALUATION -- EVALUATION CHALLENGES -- Mixed Objective -- Funding and Personnel Constraints -- Emphasis on Accountability of Funds -- Methodological Challenges -- Compressed Timelines -- Country Ownership and Donor Coordination -- Security -- Agency and Personal Incentives -- APPLYING EVALUATION FINDINGS TO POLICY -- CURRENT AGENCY EVALUATION POLICIES -- ISSUES FOR CONGRESS -- Reform Authorization Legislation -- Appropriations for Enhanced Evaluation -- Impact of Evidence Based Approach on Congressional Priorities -- CONCLUSION -- APPENDIX A. SELECT ASPECTS OF CURRENT USAID, STATE DEPARTMENT, AND MCC EVALUATION POLICIES -- End Notes -- Chapter 2 FOREIGN AID: INTERNATIONAL DONOR COORDINATION OF DEVELOPMENT ASSISTANCE -- SUMMARY -- INTRODUCTION -- OVERVIEW OF OFFICIAL DEVELOPMENT ASSISTANCE -- WHY COORDINATE? -- WHY NOT COORDINATE? -- INTERNATIONAL FRAMEWORK FOR DONOR COORDINATION -- WPAE High Level Forums -- Rome High Level Forum on Donor Harmonization -- Paris Declaration on Aid Effectiveness -- Accra Agenda for Action -- Busan Partnership for Effective Development Cooperation -- The Global Partnership for Effective Development Cooperation -- IMPLEMENTING DONOR COORDINATION -- Global Mechanisms -- Use of Multilateral Organizations -- Joint Assistance Strategies -- Sector-Wide Approaches (SWAps) -- Data Sharing -- U.S.-Specific Mechanisms for Donor Coordination -- USAID Guidance -- USAID Coordination Officers -- Coordinators of Cross-Cutting Initiatives