Academic Research 4-Multimedia

The Theory and Practice of Foreign Aid (Center for International Private Enterprise: Development Institute (CIPE), no date given)

Summary: In this multi-faceted multimedia presentation, Dr. Boris Begovic gives the basic background of foreign aid, addresses some misconceptions about foreign aid, and presents some empirical data that highlight the fact that there is a problem with current foreign aid practices.

Topic: Should the state department of the Obama Administration double foreign aid for Africa?
Category: Academic Research Multimedia
What Is It? A combination video/slideshow of a university lecture

Title: The Theory and Practice of Foreign Aid
Publication Information: Center for International Private Enterprise: Development Institute (CIPE), no date given
Author: Dr. Boris Begovic, professor of economics at the School of Law, University of Belgrade
Location: http://developmentinstitute.org/Member/Begovic_aid/Desktop%20Flash/index.html
Accessed: March 9, 2009

Support:
• Rosenstein-Rodan (1943), Rostow (1960), Sachs (2005)
• Kraay and Raddatz (2007)
• Alesina and Dollar (2000)
• Kuziemko and Werker (2006)
• Alesina and Weder (2002)
• Tornell and Lane (1999)
• World Bank report
Rosenstein-Rodan, Rostow, and Sachs are referenced because of their published theories on the existence of a “poverty trap.” Kraay and Raddatz provide empirical evidence that poverty traps actually don’t exist. The Alesina and Dollar report is used for proof that politically driven aid exists and that many donor countries have political motivations. Kuziemko and Werker have proof that U.N. Security Council membership results in more aid from the U.S. Alesina and Weder found that there is no link between how corrupt a government is and how much or how little aid they get. Tornell and Lane discovered the “Voracity Effect,” which is the Catch-22 that results when the more aid a country receives, the more they actually need. Begovic wraps up his lecture with a World Bank graph, which illustrates empirical evidence that says the more foreign aid a country receives, the less growth they experience.

Audience and Agenda: This is an academic lecture, but it was published online by The Development Institute faction of an organization called the Center for International Private Enterprise. The Development Institute consists mainly of an academic lecture series they produce, primarily for student use. CIPE is a non-profit affiliate of the U.S. Chamber of Commerce and is one of the four core institutes for the National Endowment for Democracy. They are funded and supported through the United States Agency for International Development. CIPE: Development Institute’s primary audience is students interested in the economics of development and change, their main goal is to inform students and make sure they get the most out of their undergraduate educations.

Usefulness: This multimedia presentation could be extremely useful, especially the conclusion that more foreign aid yields less growth. There are a lot of strong resources referenced and used to back up Begovic’s lecture and his own expertise in economics and development lend credibility as well. The main argument is that there are a lot of misconceptions about foreign aid that need to be dispelled in order for there to be adequate reforms made and in order to make foreign aid more effective, or effective at all. This presentation would support the argument that the state department shouldn’t double foreign aid for Africa before there are a lot of reforms made, and that if the state department ends up contributing too much aid, then growth rates will slow down or stop in the recipient countries.

Works Cited:
CIPE Development Institute about page
Boris Begovic’s biography