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Published on November 18, 2024 – Updated on November 20, 2024
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on the November 18, 2024
VoxEu column
by Rabah Arezki (CNRS, CERDI), Youssouf Camara (McGill University), Frederick Van Der Ploeg (University Of Oxford), Grégoire Rota-Graziosi (Université Clermont Auvergne, CERDI)
Critics of foreign aid are often quick to point out the faults of recipient countries. This column looks at the motives of the donor countries themselves. Examining the flow of foreign aid following major discoveries of natural resources, the authors find that aid flows tend to increase following a discovery despite the recipient country becoming wealthier. The finding suggests that donor countries are not entirely altruistic, but prioritise access to valuable natural resources and their strategic interests above recipient need.
Critics of foreign aid often focus on deficiencies in recipient countries. In this column, we explore whether foreign aid from donor countries is self-interested. We provide empirical evidence that recipient countries that experience major natural resource discoveries receive more, not less, bilateral aid (all else equal).
Continue reading (Site VoxEu - CEPR)
Critics of foreign aid are often quick to point out the faults of recipient countries. This column looks at the motives of the donor countries themselves. Examining the flow of foreign aid following major discoveries of natural resources, the authors find that aid flows tend to increase following a discovery despite the recipient country becoming wealthier. The finding suggests that donor countries are not entirely altruistic, but prioritise access to valuable natural resources and their strategic interests above recipient need.
Critics of foreign aid often focus on deficiencies in recipient countries. In this column, we explore whether foreign aid from donor countries is self-interested. We provide empirical evidence that recipient countries that experience major natural resource discoveries receive more, not less, bilateral aid (all else equal).
Continue reading (Site VoxEu - CEPR)
Photo : StoryUP, Flickr
Discussion Paper
Arezki, R, Y Camara, F Van Der Ploeg and G Rota-Graziosi (2024), ‘DP19614 Bad Samaritans in Foreign Aid: Evidence from Major Mineral Discoveries‘, CEPR Discussion Paper No. 19614. CEPR Press, Paris & London. https://cepr.org/publications/dp19614