The impact of foreign assistance on agricultural growth

Foreign development assistance to agriculture in developing countries has taken many forms. This article reviews the nature and rationale for aid to agriculture and presents the results of a multicountry analysis of the effects of development assistance on agricultural growth. The relative effectiveness of aid by region and for countries at different stages of growth also is considered. Results indicate that aid, since 1970, has improved agricultural productivity in Asia and, to a lesser extent, in sub-Saharan Africa. Aid in the aggregate does not appear to have increased agricultural productivity in the Middle East or Latin America. They also indicate that aid has been less effective in countries with high levels of external debt or sizable fiscal deficits. -from Authors