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The Macroeconomic Management of Foreign Aid
Abstract
http://www.wider.unu.edu/publications/newsletter/articles-2012/en_GB/01-2012-angle-recom/
... Overall, our analysis indicates that the polarized conservation-poverty debate that is presented in the literature does not appear to be representative of the majority views of conservation and development professionals. This finding mirrors that from other sectors as diverse as fertility (Hudson 2006), foreign aid (Addison et al. 2012) and climate change (Berezow 2011) which have revealed how policy debates are often dominated by extremes which can obscure a more nuanced and consensual middle ground. Consensual middle ground certainly seems to be a better description of our survey results than polarized extremes, and this bodes well for the development of more integrated policy approaches. ...
he published literature leads the reader to expect polarization between conservation and development communities as to the relationship between biodiversity conservation and poverty alleviation. A survey of over 1,000 conservation and development professionals does not, however, support this depiction. Indeed it reveals a surprising consensus of opinion that there is a positive link between biodiversity conservation and poverty alleviation. Where there is some division, is over the direction of that link—conservation as a means to poverty alleviation, or poverty alleviation as a means to conservation—but again conservation and development organizations appear equally divided in their views. Extreme positions often dominate policy debates, hindering progress towards effective, integrated approaches. Our analysis indicates that this may be true of the conservation-poverty debate. Debate is needed not on whether conservation and poverty are linked and whose role it is to address each agenda but on how to develop conservation and development programmes that find integrated solutions to shared challenges. This could greatly inform the process of revising national biodiversity strategies that has recently been started by Parties to the Convention on Biological Diversity (CBD) and which potentially present a real opportunity for linking conservation and development in policy and practice.
Aid is expected to promote better living standards by raising investment and growth. But aid may also affect institutions directly. In theory, these effects may or may not work in the same direction as those on investment. The authors examine the effect of aid on economic institutions and find that aid has neither a positive nor a negative impact on existing measures of economic institutions. They find the results using pooled data for non-overlapping five-year periods, confirmed by pooled annual regressions for a large panel of countries and by pure cross-section regressions. The authors explicitly allow for time invariant effects that are country specific and find the results to be robust to model specifications, estimation methods, and different data sets.
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