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Foreign Aid for DevelopmentIssues, Challenges, and the New Agenda$
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George Mavrotas

Print publication date: 2010

Print ISBN-13: 9780199580934

Published to Oxford Scholarship Online: May 2010

DOI: 10.1093/acprof:oso/9780199580934.001.0001

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Can New Aid Modalities Handle Politics?

Can New Aid Modalities Handle Politics?

Chapter:
(p.197) 9 Can New Aid Modalities Handle Politics?
Source:
Foreign Aid for Development
Author(s):

Arjan de Haan

Max Everest‐Phillips

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199580934.003.0009

Are recent donor approaches compatible with a political understanding of policy processes in partner or recipient countries? This question is given increased urgency with the recent calls for and commitment to increasing financial flows, scaling-up of aid, and promoting donor coordination. Do these commitments sharpen the potential dilemma between increased aid and the political processes, and the changes that inevitably accompany this? This chapter discusses the nature of the partnership enshrined in the Monterrey consensus, budget support, and poverty reduction strategy papers (PRSP) approaches, and assistance directly targeted to the poor, as one way of increasing aid flows to poorest countries. It also discusses approaches to the role of aid in economic growth, and argues for better understanding of the politics of growth. The chapter questions whether the current ‘institutions’ or governance paradigm brings sufficient political context to aid delivery, and discusses the relationship between domestic revenue generation and foreign aid. A concluding section draws out implications for aid delivery, and for a potential role of socio-political analysis in new aid modalities.

Keywords:   aid, donors, governance

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