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Seventy Years of Official Development Assistance: Reflections on the Working Age Population

Hassan, Sherif (2016): Seventy Years of Official Development Assistance: Reflections on the Working Age Population.

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Abstract

We contribute to the aid-development debate by investigating how official development assistance shapes the ability of developing countries to efficiently utilise their demographic capital. We measure the effect of aggregated and sectoral disaggregated foreign aid on the Human Development Index and other social indicators for 139 developing countries from 1995 to 2014. Our results provide robust evidence against the development effects of aid. The prior effects are robust regardless of the level of working age population in the recipient country and after removing the biases of aid aggregation. In light of these findings, we introduce a new setting for aid disbursements that aims to resolve common pitfalls and improve the efficacy of existing systems.

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