The article, which has just been published in the February issue of Global Policy, argues that the aid model for development is broken. It has failed to deliver meaningful progress in developing countries across a wide range of development indicators. Moreover, the model is now constrained by the fiscal realities of the major donors. Its failure is a function of ignoring the institutions, formal and informal, and incentives that often work at cross purposes to donors when the state is not functioning properly. A model that recognizes and builds on the existing, often local, institutional relationships in poor countries through public private partnerships (PPPs) offers renewed possibilities for success. PPPs can create trust through enforcing existing and newly created local institutions from the bottom up and lower investment risks by using donor money as a lever to mobilize private loans and investments. These mechanisms will support economic exchange, the source of development. This paper discusses the origins of this model, the different forms it can take, and the challenges it faces.
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About Global Policy
Global Policy is a journal that analyses both public and private solutions to global problems and issues. It focuses on understanding globally relevant risks and collective action problems; policy challenges that have global impact; and competing and converging discourses about global risks and policy responses. It also includes case studies of policy with clear lessons for other countries and regions; how policy responses, politics and institutions interrelate at the global level; and the conceptual, theoretical and methodological innovations needed to explain and develop policy in these areas. Global Policy is based at Durham University.