caa a22 4500 397559313 CHVBK 20180308164812.0 cr unu---uuuuu 161202e199610 xx s 000 0 eng 10.1093/oxfordjournals.jae.a020913 doi (NATIONALLICENCE)oxford-10.1093/oxfordjournals.jae.a020913 Mosley Paul University of Reading The Failure of Aid and Adjustment Policies in Sub-Saharan Africa: Counter-examples and Policy Proposals [Elektronische Daten] [Paul Mosley] In Africa, contrary to the experience of the rest of the developing world, aid flows as a share of GNP have increased enormously, but there is little evidence that this increase has been favourable to growth, or that the conditionality designed by donors in the 1980s to increase the effectiveness of aid has, in the aggregate, done so. This paper investigates why, using a game-theory model in which both donor and recipient seek to extract maximum advantage both from aid flows and from the policy conditions attached to them. Two important predictions of the model are that conditionality will in general be breached without penalty unless compensation is provided to losers and/or the implementation of conditions empirically proves itself effective. These predictions are confirmed in the African case. In Uganda, Mauritius and Ghana — the three countries where, as a result of compensation of losers and consistent investment and export development policies, donor policy recommendations proved credible — those recommendations were implemented and aid was effective. In all other adjusting African countries, conditionality was not credible in the sense of leading to a short-run increase in output, and aid flows were not effective. © Centre for the Study of African Economies Articles nationallicence Journal of African Economies Oxford University Press 5/3(1996-10), 406-443 0963-8024 5:3<406 1996 5 jafeco https://doi.org/10.1093/oxfordjournals.jae.a020913 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1093/oxfordjournals.jae.a020913 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Mosley Paul University of Reading NATIONALLICENCE 773 0- Journal of African Economies Oxford University Press 5/3(1996-10), 406-443 0963-8024 5:3<406 1996 5 jafeco Metadata rights reserved CC BY-NC-4.0 http://creativecommons.org/licenses/by-nc/4.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-oxford