Aid and the Undermining of Institutions

The Centre for Global Development publishes an essay on the paradox of international Aid. "...it is possible that aid could undermine long-term institutional development, particularly in sub-Saharan Africa. By reviewing the evidence of the potentially negative effects of aid dependence on state institutions, the authors provide a thorough analysis of the institutional effects of aid. The conclusions are two-fold: countries which receive a substantial portion of their revenues from foreign aid may be less accountable to their citizens, and they may face less domestic pressure to maintain popular legitimacy. The more aid countries receive from abroad, therefore, the less incentive they have to invest in effective public institutions... "
via PSD Blog