ABSTRACT
Aid in conflict or conflict in aid: futility of development planning and assistance in the absence of a viable political settlement An economy functions not in a vacuum, but surrounded and affected by a large number of social, political and historical factors and processes, which determine not only its current workings, but also its future development prospects. A meaningful analysis of any economy and the choice of economic policies and development options relevant to its development trajectory can only be discussed in the context of these numerous socio-political and historical factors, some of which are internal while others are externally-imposed on the economy. This extends to the study and analysis of the workings of foreign aid in developing countries. Analysis of aid and its effectiveness in the mainstream economics framework is often conducted regardless of the specific characteristics and structures of the recipient economy. As a result, most of the policy recommendations for improving the effectiveness of aid are of little relevance to the recipient country’s socio-economic structures. The mainstream neoclassical economics argues that the main determinant of aid effectiveness is the nature of domestic policies of the recipient government and the policy environment in which it is disbursed; however, this book has demonstrated that there are a large number of factors beyond the mere policies of the recipient government which influence and often determine the workings of aid. This is all the more the case in recipient countries which are affected by conflict and war, where the workings and effectiveness of aid becomes a function of a host of conflict-related, political, diplomatic and ideological factors.
