The Economics of Aid
By J. M. Healey
Routledge – 2011 – 124 pages
First published in 1971, this reissue considers the main aspects of foreign aid to developing countries in terms of economic concepts and principles. The author gives an economic definition of aid and considers the motives for giving aid and the principles on which it may be allocated. He looks at the effect on the economic growth of developing countries of both the aid given and the need to repay the debt, and the effect on trade patterns and resource allocation of tying aid to one particular project, or one source of goods. While economic analysis is only a first step in providing a basis for policy decisions on foreign aid, Dr Healey shows that many issues can be clarified by looking at them from the economists’ point of view.
1. Aid: Motives 2. Aid: Allocation Principles 3. Aid and Economic Growth I 4. Aid and Economic Growth II 5. Debt and the Terms of Aid 6. Aid Tying: Trade and Resource Allocation Effects 7. Some Questions and Further Issues