Aid effectiveness: Human rights as a conditionality measure

Douch, Mustapha; Edwards, Huw; Landman, Todd; Mallick, Sushanta

Abstract

The ‘aid conditionality’ hypothesis as documented in the literature suggests that aid is effective in augmenting growth only in the presence of a sound policy environment. This hypothesis was so influential that its policy recommendation, to provide aid conditional upon recipient domestic policies, is currently the dominant ODA allocation criterion. However non-economic dimensions of development (political and institutional) are increasingly seen as fundamental. For this reason, this paper focuses on the linkage between aid and a non-economic factor like Human Rights (reflecting repression and corruption) as a measure of aid effectiveness, in explaining growth outcomes across 42 Least Developed economies. We find that countries with better protection of human rights experience positive growth from aid receipts, signifying the role of stronger institutions in enabling more effective use of aid. The paper thus concludes that the measurement and monitoring of human rights provision is a useful tool in gauging the likely effectiveness of foreign aid.

• Journal Article Type: Article
• Acceptance Date: May 26, 2022
• Online Publication Date: Jun 10, 2022
• Publication Date: Oct 1, 2022
• Deposit Date: Jun 16, 2022
• Publicly Available Date: Jun 20, 2022
• Journal: World Development
• Print ISSN: 0305-750X
• Electronic ISSN: 1873-5991
• Publisher: Elsevier BV
• Peer Reviewed: Peer Reviewed
• Volume: 158
• Article Number: 105978
• DOI: https://doi.org/10.1016/j.worlddev.2022.105978
• Keywords: Economics and Econometrics; Sociology and Political Science; Development; Geography, Planning and Development
• Public URL: https://nottingham-repository.worktribe.com/output/8499609
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0305750X22001681?via%3Dihub