From the Editor
Author | Laura Wallace |
Position | Editor-in-Chief |
At the Group of Eight summit in Gleneagles, Scotland, in July, the major industrial nations promised to significantly boost aid for developing countries-including doubling aid to Africa-in the hopes of helping poor countries reach the UN Millennium Development Goals (MDGs) by the 2015 target date. But will markedly higher aid levels really do much to "make poverty history" as aid campaigners have argued? Are expectations being unduly raised? After all, foreign aid as a development tool is nothing new, and its record over the past 40 years has been anything but encouraging.
For the September issue of F&D, we invited aid experts, donors, and recipients to explore the questions that are front and center in development circles. What can be done to ensure that higher aid promotes growth and reduces poverty? How can policymakers in recipient countries improve the delivery of government services and infrastructure investments, along with managing spending decisions, when a large proportion of financing (aid) will be outside their control? How can donors ensure that their aid flows are less volatile and more predictable? And how can recipient countries prevent aid from causing currency appreciations or domestic inflation that would undercut their international competitiveness? The general consensus seems to be that scaling up aid flows will be just the start of a complex set of decisions and tough choices, requiring a truly global partnership-of recipients and donors and international financial institutions. Not surprisingly, some observers are more optimistic than others as to whether this will occur and thus how recipient countries will fare.
In "People in Economics," we profile Jagdish Bhagwati, a leading economist in the area of trade and...
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