IAFF 6101 Lecture Notes - Lecture 2: Jeffrey Sachs
23 Mar 2016
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Class 2: internaional aid architecture & efeciveness. Debt forgiveness leads to double couning of aid: 1st as iniial aid in loans and then again as debt forgiveness/grant. Donor countries are admiing a mistake on the lending terms (i. e. should have been a grant rather than a loan) +signiicant increase of aid going toward social sectors (investment in people) and decrease in infrastructure and producion, especially in africa. Signiicant growth in the number of those who are considered to be donors. Donors are reacing perversely to low capacity: smaller size (almost half as much) projects in very low government capacity than for a government with very high capacity. Reacion to negaive/criicisms in the late 1990s toward aid. Rising obsession with numbers and compeiion pressure for results beyond disbursement. Growing number of new donors -> more fragmentaion. Globalizaion -> more awareness of what others are doing. Growing role of other actors csos/ngos, foundaion, and private investment.
