Chapter 5 | Page 212 ‘positive aid-corruption nexus’ and argues that development assistance fuels and exacerbates corruption.115 On the other hand, José Tavares argues that, while the effect of aid corruption is causally linked to the geographical and cultural distance between donor and recipient, aid generally results in decreased corruption.116 Other authors have proposed that the corruption effect of aid is often contingent on the type of aid and assistance.117 While corruption and related challenges of governance are politically sensitive and complex, addressing issues of corruption in the context of international assistance programmes can significantly enhance their effectiveness, especially in achieving targeted ESC rights objectives. 5.3.3 Outcome challenges Recipient States also face a number of challenges related to the overall outcome of international assistance and co-operation activities. Key issues include aid dependency and sustainability and debt management. In order to make aid and assistance meaningful, recipient States should overcome these challenges through appropriate policy action. 5.3.3.1 Aid dependency and sustainability With regard to the sustainability of aid, issues such as disbursement difficulties, effects on prices and effects on competitiveness need to be better understood.118 While development co-operation helps countries in terms of increased resources, the issue of fiscal sustainability is important in designing and implementing development co-operation policies. The true impact of aid projects may not be easy to assess because concessional assistance 115 Simplice A Asongu, 'On the Effect of Foreign Aid on Corruption' (2012) 32(3) Economics Bulletin 2174-2180. 116 José Tavares, 'Does foreign aid corrupt?' (2003) 79(1) Economics Letters 99-106. 117 Uchenna Efobi, Ibukun Beecroft and Simplice A Asongu, 'Foreign Aid and Corruption: Clarifying Murky Empirical Conclusions' (African Governance and Development Institute WP/25/14, African Governance and Development Institute. 118 Morrissey, above n 91.

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