Aid with strings: a study on foreign ODA and conditional aid.

Abstract

Official Development Aid, as defined by the Organization for Economic Co-Operation and Development, or the OECD is the flow of development assistance from official agencies in developed nations to nations which are eligible to receive ODA or to multilateral development institutions. These disbursements must be “administered with the promotion of economic development and welfare as its main objective” (OECD, 2008).

This research intends to assess whether Official Development Aid is either beneficial or detrimental to the recipient nations. The researcher also intends to shed light on different organizations which use faulty forms of aid for whatsoever reason and to analyze what forms of aid could be considered faulty.

The method that was used is triangulation. The researcher utilized this method in order to look at the different aspects of a certain project and policy not just from the point of view of the status quo, but to accommodate different ideas and alternative theories most especially those from the beneficiaries themselves. From a view of many different angles, the researcher could make the best decision in regards to a certain issue.

The researcher discovered that ODA acts as a magnifier of the efforts placed into it. If an aid effort is done properly, then the aid will be effective. If an aid effort is done irresponsibly, then the aid will be a burden to its recipients. The researcher also defined what constitutes irresponsible aid, being tied aid, damaging conditional aid and the tolerance of corrupt practices.