Interest in the controversial topic of foreign aid has heightened in recent years, with some donor countries pledging to provide substantially larger amounts of aid in the coming years and others reducing their aid commitments. Aid Architecture (the structures within which aid is delivered to recipient countries) has changed considerably since the beginning of the 21st century. The literature has also developed significantly in this period. This course introduces students to key concepts and issues relating to the allocation of aid by donors and to its effectiveness in recipient countries. The course also aims to review debates within donor countries and within recipient countries about aid allocation, impact and effectiveness. Review of developing country debt issues is included in the course content. Topics include: aid definition, concepts and volume; why aid is given and accepted; the impact of aid and its effectiveness; aid allocation and aid architecture; emerging donors; recipient responses to aid; current controversies and the future of aid.

One two-hour meeting per week for 10 weeks. Revision lecture is arranged on an ad-hoc basis.

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ILO (covered)

Foreign aid is a particularly controversial topic. Interest in it has heightened in recent years, with some donor countries pledging to provide substantially larger amounts of aid in the coming years and others reducing their commitments. The aim of the course is to introduce students to key concepts and issues relating to the allocation of aid by donors and to its effectiveness in recipient countries. It also aims to introduce students to the economic, political and ethical rationales of why international donors provide foreign aid and how this relates to recipient country responses.

The following topics are addressed:

■ Aid definition, concepts and volumes;

■ Why is Aid given and accepted;

■ The macroeconomic impact of Aid;

■ Aid effectiveness - definition and measurement;

■ Aid allocation and Aid architecture;

■ Emerging donors;

■ Recipient responses to Aid;

■ Key actors: official donors and NGOs;

■ Current controversies and the future of aid.

At the end of the course students should be able to:

1. Discuss the key concepts and definitions of aid;

2. Analyse trends in and global levels of aid;

3. Analyse the economic, political, commercial, and moral rationales for foreign aid; 

4. Explain the relationship between aid, economic growth and development;

5. Contribute to debates over the role of aid in the contemporary world;

6. Identify the factors determining the donor allocation of aid among developing countries;

7. Contribute to the current debate over linking aid allocations to the quality of recipient country policy regimes;

8. Discuss the variety of conceptualisations and characteristics of foreign aid which is contributed by emerging donors;

9. Discuss the importance of donor country harmonisation, recipient country ownership and donor-recipient accountability for aid effectiveness, and;

10. Understand the direct and indirect links between policies affecting aid and its impact.

Students must submit at least 75% by weight of the components (including examinations) of the course's summative assessment.