Chapter 15 Aid and Economic Development in Africa

The question discussed in this paper is whether foreign aid can help accelerate growth in African countries. The paper reviews growth determinants and growth constraints in Africa and discusses how aid can help relieve the constraints. Issues covered are the choice of aid modalities, donor coordination, conditionality, and international integration. A key question addressed is how aid should be organized not to overburden the recipient system and to provide incentives for policy makers to perform. The paper also touches upon the need for international trade reforms and public goods investments.