In different times and places, foreign aid has been highly effective, totally ineffective, and everything in between. It assisted growth in the Republic of Korea and Botswana in the 1960s, Bolivia and Ghana in the late 1980s, and Uganda and Vietnam in the 1990s. It still plays a critical role in supporting institutional and policy reform in developing countries, which is crucial for alleviating poverty. However, foreign aid has also failed spectacularly. Incompetence, corruption, and misguided policies persisted for many years in the former Zaire, for example, where there was a steady flow of aid. And in Tanzania, despite $2 billion in aid over twenty years, lack of provision for maintaining roads meant the roads often deteriorated faster than they could be built. 'Assessing Aid' includes important research such as: - analyzing aid's nonfinancial role--its impact as a transfer of technology or ideas; - investigating how foreign aid is declining sharply at a time when reforms in developing countries have made it most effective; - examining whether foreign aid is 'fungible'; - documenting.
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