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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