Abstract
Aid conditionality has emerged as a dominant tool by donor countries in nation building efforts in the developing world. Unfortunately, this strategy has encountered obstacles in achieving substantive change. The purpose of this paper is to investigate possible modifications and augmentations to aid conditionality regimes that could more easily induce political development in recipient countries. To provide a background against which to plan changes, the paper documents important determinants of political change, including public opinion, donor self-interest, and unconscious biases. The paper also evaluates possible malleable policy factors, including adoption speed, proportionality, outcome-based provision, and donor co-ordination. While much of the research is theoretical and requires further real-world testing, the paper concludes that the most desirable policy would be individualized, outcome-based, slowly adopted, compartmentalized, and coordinated conditions imposed by multiple countries.
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Throwing (Sh)Aid: Optimizing Aid Conditionality for the Developing World
Aid conditionality has emerged as a dominant tool by donor countries in nation building efforts in the developing world. Unfortunately, this strategy has encountered obstacles in achieving substantive change. The purpose of this paper is to investigate possible modifications and augmentations to aid conditionality regimes that could more easily induce political development in recipient countries. To provide a background against which to plan changes, the paper documents important determinants of political change, including public opinion, donor self-interest, and unconscious biases. The paper also evaluates possible malleable policy factors, including adoption speed, proportionality, outcome-based provision, and donor co-ordination. While much of the research is theoretical and requires further real-world testing, the paper concludes that the most desirable policy would be individualized, outcome-based, slowly adopted, compartmentalized, and coordinated conditions imposed by multiple countries.
