The Value Chain of Foreign Aid: Development, Poverty Reduction, and Regional Conditions (Contributions to Economics)

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This book assesses the prospects of official development assistance (ODA) for poverty reduction. It analyzes the entire value chain of ODA, including provision, allocation and utilization. Within each of these components, coverage examines scope and limits of aid. The horizontal interactions between donors and recipients as well as the vertical connections to local and region-specific conditions represent the heart of this book's approach.

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The Value Chain of Foreign Aid: Development, Poverty Reduction, and Regional Conditions (Contributions to Economics) Review

This is a dry, heavily statistical look at foreign aid, from developed countries to the developing world. The causes were invariably worthy, like fighting malaria or AIDS.

Debt restructuring is also studied. Along with the corresponding topic of debt relief, where debt would be written off by the creditors (nations or banks). Here, there is a recap of the Baker plan (1985), the Lawson plan (1987), and the Brady plan (1989). Plus the informal Paris Club. More recent efforts include a call for 100% debt cancellation, as suggested by the US and British finance ministers in 2005. Unlike trendy or populist efforts that support this total debt cancellation for some nations, the book also explains the counter arguments. That this disfavours other nations with debt, that won't get the cancellations. Or that the "lucky" nations who do, will still need to borrow for future programs. And that the cancellations offer little incentive for them to improve their governance (like reducing corruption). In effect, it penalises those countries who have good policies and used aid and loans effectively.

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