Aid and Development Financing

3 Credits · Level: Undergraduate

This course is designed to complement courses that explore the history and theory of economic development by focusing critically on the role of foreign assistance and other development financing as instruments to support economic development. The core objectives are for students to be able to (1) understand the theories, structures, and practices of foreign assistance and other types of finance; (2) evaluate and understand the evidence on aid effectiveness, debates about aid, and proposals for strengthening aid; and (3) understand the relative advantages and disadvantages of other sources of financing for development. About two-thirds of the course will focus on foreign assistance, and the other third on other sources of development finance. The course will examine the purposes, history, organization, modalities, debates, and evidence around foreign aid and aid effectiveness. We will critically examine current debates about foreign assistance effectiveness, movements toward aid reform, and the changing landscape of development donors, including private foundations, corporations, and philanthropists. We will explore the relative advantages and disadvantages for developing countries of other sources of development finance, such as debt, tax revenues, and private capital flows. The class will meet twice each week. The format will be a combination of lectures, guest speakers, and discussions.