Going Beyond the Averages: Aid and Development

One of the persistent, unresolved controversies of economic development is the effectiveness of development assistance —whether foreign aid contributes to economic development. This article argues that this controversy is largely an artifact of a methodology that focuses on the “averages” and pays inadequate attention to the specific characteristics of individual societies. For enhancing aid effectiveness, one needs to discard the one-size-fits-all approach, and adopt a more nuanced, tailor-made strategy based on a comprehensive understanding of specific countries.