Aid and the Resource Curse : How Can Aid Be Designed to Preserve Institutions?

Aid and the Resource Curse : How Can Aid Be Designed to Preserve Institutions?

Many studies have found that countries with abundant natural resources grow more slowly than those without a phenomenon often known as the resource curse or the curse of oil. Some development specialists are concerned that foreign aid may also...

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Bibliographic Details
Main Authors:	Harford, Tim, Klein, Michael
Format:	Publications & Research
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTABILITY AID AID AGENCIES AID DEPENDENCE AID FLOWS BUREAUCRACY CIVIL SERVICE CIVIL WAR CORRUPTION COUNTRY RISK GUIDE DEMOCRACY DEMOCRATIC INSTITUTIONS DEVELOPMENT ASSISTANCE DEVELOPMENT RESEARCH ECONOMIC DEVELOPMENT EMPIRICAL ANALYSIS EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATES EXPORTS FOOD AID FOREIGN AID FUELS GAMBIA GOVERNMENT SPENDING INFLATION INSTITUTIONS MONETARY POLICY NATURAL RESOURCES OIL OIL PRICES POLICY ENVIRONMENT POLICY RESEARCH POLITICAL INSTITUTIONS POLITICAL PARTICIPATION POLITICAL SYSTEM PRIORITIES PRIVATE SECTOR DEVELOPMENT PRODUCTION COSTS PROPERTY RIGHTS PUBLIC POLICY PUBLIC SERVICES QUALITY OF GOVERNANCE RULE OF LAW SKILLED WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2005/04/6040184/aid-resource-course-can-aid-designed-preserve-institutions http://hdl.handle.net/10986/11223

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Summary:	Many studies have found that countries with abundant natural resources grow more slowly than those without a phenomenon often known as the resource curse or the curse of oil. Some development specialists are concerned that foreign aid may also cause a resource curse. Recent research is not conclusive, but certainly does not rule out the possibility. This Note suggests ways to avoid this risk and urges more attention be devoted to it.