ABSTRACT
This chapter argues, sharp rises in foreign aid spending in recent years have not resolved the long-standing debates about the utility of aid in eradicating extreme poverty or stimulating long-term economic growth. In the view of advocates, aid reflects the generosity, compassion, and best intentions of governments and their people. Others defend aid on utilitarian grounds. They argue that aid serves national self-interests by securing allies, promoting stable and democratic governments, fostering export markets, and subsidizing domestic fanners and manufacturers through the tying of aid. Critics charge that aid flows are wasted on bloated bureaucracies, reward corrupt dictators, and serve as an agent of Northern hegemony. Despite pledges to achieve the Millennium Development Goals by 2015, aid donors face severe limitations in their ability to secure a larger share for development aid in their national economies and budgets. Therefore the development aid regime is unlikely to achieve its goals under these conditions.
