This week we consider a controversial topic, the role of foreign aid in promoting economic development (growth) in developing countries. I don’t want to lecture too much, as our reading can provide much better insight, as Easterly was a central participant in this debate.
Today I will start with a technical overview of empirical research in economic development. I will then give you an overview of the history of foreign aid and its major stages/programs (structural adjustment lending, etc.), the theoretical arguments for aid’s necessity (Harrod-Domar model, financing gap/poverty trap, etc) and a next class will be an empirical assessment of its effectiveness (and our discussion).
- Chapters 2,6 in Easterly, 2002, The Elusive Quest for Growth
Below, you can find the slides in two formats. Clicking the image will bring you to the html version of the slides in a new tab. Note while in going through the slides, you can type h to see a special list of viewing options, and type o for an outline view of all the slides.
The lower button will allow you to download a PDF version of the slides. I suggest printing the slides beforehand and using them to take additional notes in class (not everything is in the slides)!