Premium
The Aid Paradigm for Poverty Reduction: Does It Make Sense?
Author(s) -
Weiss John
Publication year - 2008
Publication title -
development policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.671
H-Index - 61
eISSN - 1467-7679
pISSN - 0950-6764
DOI - 10.1111/j.1467-7679.2008.00416.x
Subject(s) - blueprint , poverty reduction , corporate governance , poverty , language change , good governance , development economics , economics , political science , psychological intervention , public economics , political economy , economic system , economic growth , psychology , literature , finance , psychiatry , engineering , mechanical engineering , art
Thinking on economic policy for development has undergone many shifts in response to the perceived weak results of earlier adjustment reforms. A new donor consensus has emerged based around the central themes of economic growth, good governance and social development. This article examines the logic behind this new aid paradigm, revealing a nuanced story with country circumstances playing a critical role and particular interventions varying in impact. For example, growth does not always lead to gains for the poor that match the national average; public expenditure needs to be targeted to achieve social development, but effective targeting is difficult; governance reform may be critical but there is no simple governance blueprint, and the corruption‐growth association need not always be negative.