ABSTRACT
This chapter examines the African record with respect to development assistance. Local and international non-governmental organizations (NGOs) have grown exponentially and become increasingly involved in development assistance over time. Some of the larger NGOs have budgets that exceed those of several bilateral donors. The implicit assumptions were that governments in developing countries would be able to use aid efficiently and that industrialization was the key to development. While growth remained an important element of economic development in the 1960s, H. Chenery and A. Strout (1966) extended the Harrod-Domar model to the open-economy case, and introduced foreign aid more explicitly in their own macroeconomic model. The impact of aid in achieving growth and economic development has always been questioned but aid effectiveness garnered more attention after the adoption of the Millennium Development Goals in 2001 and a disappointment with what aid had achieved in previous decades.
