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Foreign Aid and Development: A case study on the effect of aid dependency on economic growth
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Government.
2018 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Foreign aid has been a constant topic on the international arena, with a possible peak during the 1990s. It has been aimed at different goals: economic growth, implementing political ideals and ideologies. Today, aid is often considered the sole solution to many of the problems in Africa. Economist Dambisa Moyo opposes the idea of aid being the solution for attaining economic growth. Hence, Moyo presents a theory in her book Dead Aid which argues that Sub-Saharan African countries would benefit from aid ceasing within five years. Instead they should rely on financial solutions, since aid is inhibiting for economic growth. Thus, the research in this essay aspires at trying Moyo´s theory by looking at a case and its empirical facts, in order to see if it is possible to achieve substantial economic growth while being aid dependent? The conducted study shows that while Moyo´s three identified key variables might have a positive impact on economic growth, they are not necessarily essential. The results from the study indicate that while Moyo persistently argue on foreign aid being inhibiting for economic growth in Sub-Saharan countries, it seems to have had a positive effect in Ethiopia. Furthermore, it indicates that economic growth can be accomplished in aid dependent economies as well.

Place, publisher, year, edition, pages
2018. , p. 35
Keywords [en]
Aid dependency, foreign aid, Ethiopia
National Category
Social Sciences Political Science
Identifiers
URN: urn:nbn:se:uu:diva-343433OAI: oai:DiVA.org:uu-343433DiVA, id: diva2:1186058
Subject / course
Political Science
Educational program
Bachelor Programme in Political Science
Supervisors
Examiners
Available from: 2018-02-28 Created: 2018-02-27 Last updated: 2018-02-28Bibliographically approved

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Output format
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