Editorial from the Rising Nepal
“……there is mounting literature suggesting that aid is determined by donors’ self-interests, and, hence, it is inherently inefficient and ineffective to the recipients while efficient and effective to the donors. According to researchers, an academic review of the evidence of aid’s impact uncompromisingly maintains that aid had neither increased the welfare nor enhanced growth in the poor economies, and thus it should be reduced rather than increased.
Indeed, while the recipient countries demand more aid based on their developmental concerns, the donors supply it, in most of the cases, based on their deliberately articulated political processes and self-serving interests, expressed through numerous conditional ties. In the face of growing poverty and inequality in the developing world, it is hard to believe that aid has become really effective and efficient.
However, it must be acknowledged that bad governance in the recipient countries is also responsible as one of the most crucial causes of aid failure. Therefore, for aid to become efficient and effective, donors need to become more altruistic while recipients must ensure good governance in practice.”
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