ABSTRACT
This chapter assesses the possible growth impact of two contrasting bilateral donors based on the composition of their aid, in the context of Uganda’s Poverty Eradication Action Plan. It revisits the evolution of the literature on aid and economic growth, highlighting the ongoing perceptions and misconceptions related to this debate in the context of Uganda. The chapter draws on the findings of the literature and test the applicability of the findings through case study analyses of the United Kingdom (UK) and Japan. The UK is characterised by a sustained approach to General Budget Support and institution-based project support, whereas Japan is characterised by project support largely channelled through technical cooperation and tied aid in the areas of investment and productivity enhancement. The chapter explores that despite the UK’s adherence to the aid effectiveness agenda is more targeted towards stimulating short-term economic growth based on the ethos of the East Asian model of development.
