Bøger i International Finance and Deve serien

The dismal experience of many developing countries with the use of large inflows of commercial bank loans and official development assistance in the 1970s and 1980s has manifested the continuous external vulnerability of their economies. This study provides a rigorous theoretical and empirical analysis of the international aspects of development finance, Credit-rationing rules set by bank managers and donor governments, together with uncoordinated macroeconomic policies in the industrialized world, tend to create unstable and inadequate external financing conditions for the developing world. This study not only makes overly clear that a global framework is needed to assess the contribution of external financial resources for development, it provides one as well.

This book presents an accounting framework to critically review existing studies of aid's macroeconomic effects and as a basis for four country studies on Guinea-Bissau, Nicaragua, Tanzania and Zambia. This framework focuses on the impact of different types of aid on the level and composition of key macroeconomic aggregates such as imports, investment and government expenditure. The importance of the relationship between aid and policy reform is also stressed. The case studies find that aid has had a generally positive contribution, though recommendations to further improve aid impact are also given.