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Book Details
Abstract
“Development Without Aid” opens up perspectives and analyzes facts about foreign aid to the poorest developing countries. The discussion is advocacy as much as analysis, and makes extensive reference to recent research, including the author’s previous work on the World Bank.
Starting from a perception about development formed during the author’s formative years in what is now Malawi, the book develops a critique of foreign aid as an alien resource inherently unable to provide the necessary dynamism to propel the poorest countries out of poverty, and compromised by profound anomalies which subvert its own effectiveness. The book aims to help move the perception of development in poor countries squarely beyond foreign aid and beyond the discussion of its role, architecture and design, and to re-assert an indigenous development path out of poverty.
To move beyond foreign aid, the book examines a new international dynamic, i.e., the rapid growth of the world’s diasporas as a quasi-indigenous resource of increasing strength in terms of both financial and human capital. It considers the extent to which such resources might be able to replace the apparatus of foreign aid and help move towards a reassertion of sovereignty by poor states, especially in Africa, over their own development process.
“David Phillips has written a sustained and reasoned condemnation of the aid process as practiced for the last half century. Anyone defending the aid industry will need to confront this important book.” —Kenneth Reinert, Professor of Public Policy, George Mason University
“Development Without Aid” opens up perspectives about foreign aid to the world’s poorest countries. Growing up in Malawi the author developed a sense of the limitations of foreign assistance and from this evolves a critique of foreign aid as an alien resource unable to provide the dynamism that could propel the poorest countries out of poverty.
The book aims to help move the discussion beyond foreign aid. It examines the rapid growth of the world’s diasporas as a quasi-indigenous resource of increasing strength in terms of both financial and human capital, and considers how far such a resource might supersede aid. It uses extensive research findings to explore the possibilities for a resumption of sovereignty by poor states, especially in Africa, over their own development with the assistance of the world’s diasporas.
“The merit of this volume is in bringing together detailed information on aid and its impact with a full insider’s understanding of the bureaucracy of aid and how it can distort weak economies.” —John Weiss, Professor of Development Studies, University of Bradford
“In ‘Development Without Aid,’ David Phillips has written a timely book that challenges many accepted ideas about foreign aid. This compelling text will provoke an interesting and necessary debate.” —Moisés Naim, Carnegie Endowment, and author of “The End of Power”
‘An excellent book – one that I hope starstruck journos at the “FT” and “Economist” [...], who have given the [World] Bank a free pass over the years, will read.’ —Andrew Hilton, ‘Financial World’
‘This is a very well-written book which will no doubt have a wide readership covering practitioners of both public and development policy […] In the context of the unresolved controversies relating to the developmental role of external aid, the author makes important contributions towards bringing out the importance of country-specific insights in understanding the mechanisms and processes that explain why, how and when aid works in particular societies which are key considerations for making the design and delivery of aid effective. ’ —Mustafa K. Mujeri, ‘Bangladesh Development Studies’
David A. Phillips is a writer and economic consultant. He was educated in Britain and has a PhD in economic development.
“David Phillips makes a compelling case that international migration and remittances have vast potential to promote development in many of the world’s poor nations. By contrast, foreign aid – in its current form – is unlikely to lead to transformative changes in the developing world. His ideas are prescient. Development professionals should take note.” —Dean Yang, Associate Professor, Department of Economics and the Gerald R. Ford School of Public Policy, University of Michigan
Table of Contents
Section Title | Page | Action | Price |
---|---|---|---|
Development Without Aid\r | i | ||
FRONT MATTER\r | i | ||
Half Title | i | ||
Title | iii | ||
Copyright | iv | ||
CONTENTS | v | ||
LIST OF ACRONYMS | vii | ||
ACKNOWLEDGMENTS | ix | ||
MAIN MATTER \r | 1 | ||
Chapter 1 INTRODUCTION: MOTIVATION AND PERSPECTIVE | 1 | ||
A Starting Point | 1 | ||
Aid or Trade? Preliminary Thoughts | 7 | ||
Aid for Trade? | 9 | ||
Aid Effectiveness: Preliminary Thoughts | 10 | ||
Organization of the Book | 11 | ||
Chapter 2 WHAT IS FOREIGN AID, WHO DOES IT, WHY AND HOW MUCH IS THERE? | 13 | ||
What Is Development Aid? | 13 | ||
A Rapid Review of the Evolution of Aid Strategy | 17 | ||
The Motives for Giving Aid | 21 | ||
Who Receives Aid and Who Gives It – Aid Architecture and Activity | 23 | ||
Aid Effort | 26 | ||
How Important Is Aid in the Finance of Development? | 30 | ||
The Human Resources Effort | 31 | ||
Some Preliminary Conclusions from Simple Facts | 34 | ||
Chapter 3 HOW FAR HAS DEVELOPMENT AID BEEN EFFECTIVE? | 37 | ||
Aid and Growth: Macro Evaluation | 38 | ||
Micro-level Evaluations of Development Projects: The World Bank’s Performance | 44 | ||
Development Effectiveness on the Ground | 47 | ||
Capital projects | 47 | ||
Agriculture, Education and Health | 49 | ||
Aid Software – Advice, Capacity and Institution Building | 52 | ||
Microfinance | 55 | ||
Participation | 58 | ||
Irrational Behavior? | 59 | ||
The Cost of Delivering Development Projects | 60 | ||
Epilogue – Aid Effectiveness | 63 | ||
Chapter 4 WHY HAS DEVELOPMENT AID DONE SO LITTLE? | 65 | ||
Impact Evaluation: The Solution to Development Effectiveness? | 66 | ||
Beyond Evaluation: The Aid Relationship and Its Origins | 71 | ||
Aid Dependence | 75 | ||
Aid Dependence and Local Ownership | 79 | ||
Aid Fragmentation | 81 | ||
Principals, Agents and Accountability | 85 | ||
Aid, Accountability and Democracy | 88 | ||
Taxation and Institution Building | 91 | ||
The Fruits of the Democracy–Accountability Gap – Corruption | 94 | ||
Alienation and the Social and Political Determinants of Aid Ineffectiveness | 96 | ||
Could Chinese Aid Be Different? | 98 | ||
Chapter 5 CHANGING THE DYNAMICS OF DEVELOPMENT | 103 | ||
A Prospect for Change? | 103 | ||
The Emergence of the Diasporas | 104 | ||
The Emergence of Skilled Migration | 105 | ||
Different Migrants Have Different Impacts | 108 | ||
How many Migrants Return? | 109 | ||
The Emergence of Diaspora Money Flows | 110 | ||
Aid and Remittances in International Finance | 113 | ||
Funds Transfer Mechanisms | 115 | ||
The Total Picture of Diaspora Cash | 116 | ||
The Reversal of Flight Capital? | 119 | ||
Diaspora Flows and Development Impact | 121 | ||
Diaspora Flows: Consumption or Investment? | 122 | ||
How Much Investment? | 126 | ||
Stories of the Diasporas | 128 | ||
India | 129 | ||
The Indus Entrepreneurs (TiE) and Venture Capital | 130 | ||
The Overseas Chinese | 132 | ||
African Diasporas | 132 | ||
Ethiopians in the US | 133 | ||
Nigerians and Ghanaians in the UK | 134 | ||
Diasporas and Political Influence Back Home | 135 | ||
Do Diasporas Have a Common Purpose? | 136 | ||
Why Are They Important? Who Owns Diaspora Resources? | 137 | ||
What Should an Aid Donor Do about Migration? | 139 | ||
Chapter 6 “NEW AID”: NEW WAYS TO PROMOTE AND FINANCE DEVELOPMENT? | 141 | ||
Non-alienating and Alienating Aid | 141 | ||
New Aid’s New Methods | 144 | ||
Output-based aid | 144 | ||
Cash on delivery | 145 | ||
Foundations, funds and challenge funds | 147 | ||
The US Millennium Challenge Fund | 148 | ||
Global health funds | 149 | ||
Budget support | 150 | ||
Conditional Cash Transfers | 151 | ||
How Far Does New Aid Create a New Relationship? | 152 | ||
Chapter 7 ANOTHER PATHWAY OUT OF POVERTY? | 155 | ||
Private Flows and Foreign Aid | 155 | ||
Leveraging the Diaspora | 156 | ||
Government Action to Support Migration | 157 | ||
Support to Remittances and New Financing Instruments | 158 | ||
A Summary of Home Government Efforts | 160 | ||
Can the Diaspora Help to Lead all Poor Countries out of Poverty? | 161 | ||
Preconditions for Attracting Investors | 163 | ||
The Role of the Donors in the New Pathway | 164 | ||
Chapter 8 EXIT STRATEGY – REPLACING FOREIGN ASSISTANCE | 167 | ||
Some Elements of an Aid Disengagement Strategy | 167 | ||
Country Assistance Funds: A Possible New Aid Artifact | 169 | ||
Global and Other Public Goods (GPGs): Where Development Aid Might Be Essential | 171 | ||
Intentions and Consequences | 173 | ||
Chapter 9 POSTSCRIPT | 177 | ||
END MATTER\r | 181 | ||
NOTES | 181 | ||
1. Introduction: Motivation and Perspective | 181 | ||
2. What Is Foreign Aid, Who Does It, Why and How Much Is There? | 183 | ||
3. How Far Has Development Aid Been Effective? | 187 | ||
4. Why Has Development Aid Done So Little? | 192 | ||
5. Changing the Dynamics of Development | 200 | ||
6. “New Aid”: New Ways to Promote and Finance Development? | 207 | ||
7. Another Pathway Out of Poverty? | 208 | ||
8. Exit Strategy – Replacing Foreign Assistance | 210 | ||
INDEX | 213 |