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Begin New Search Topic Foreign Aid Content Type Research Paper Publication Year within 5 Years Publication Year within 25 Years

1. Financial Assistance from GCC Countries and the Democratization of Arab States

Author:
Masaki Matsuo
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
One of the effects that Gulf Arab countries extend to the entire Middle East is that of stabilization through financial assistance. Huge oil export revenues are transformed into financial aid and funneled into neighboring Arab countries. The Middle East and North Africa region (MENA) is known throughout the world as a region where no progress has been made in democratization. Thus, if financial assistance from the Gulf Arab countries is stabilizing the systems of neighboring countries, it suggests that the Gulf Arab countries are hindering democratization in MENA. Such concerns can be traced back to Beblawi (1987) but have never been demonstrated. In this paper, official development assistance (ODA) statistics and democratization indicators will be used to conduct a preliminary analysis of the effects of financial assistance provided to MENA by the Gulf Arab countries in curbing democratization.
Topic:
Democratization, Foreign Aid, Finance, and Gulf Cooperation Council
Political Geography:
Middle East, Arab Countries, and Gulf Nations

2. Five Principles for Use of Aid in Subsidies to the Private Sector

Publication Date:
10-2019
Content Type:
Research Paper
Institution:
Center for Global Development
Abstract:
There is a significant and ongoing ramp-up in support for explicitly subsidized official development finance to the private sector around the world, but its role remains poorly defined. Lessons from the aid effectiveness literature as a whole and principles on effective use of aid suggest the need for approaches that do not merely finance the marginal private investment. Regarding experience of government intervention in markets, subsidies are only one of many options to incentivize the private sector, and bespoke subsidies provided by outside actors are rarely likely to be the most efficient form. This paper discusses where outside subsidy of the private sector may make sense and develops principles for the use of aid in subsidies based on that analysis. Subsidies should be allocated on the basis of necessity in meeting public policy goals; the norm for subsidy allocations should be competitive approaches or open offers; non-competitive subsidies should only support market making; subsidy levels should be capped; and subsidy levels should be transparent. Much of the content of these “new” principles is already implied or specified by the existing Multilateral Development Bank Principles to Support Sustainable Private Sector Operations, but they suggest that development finance institutions should not use their standard business model when using subsidies.
Topic:
Development, Privatization, Foreign Aid, Private Sector, and Subsidies
Political Geography:
Global Focus