Publication
Title
Dutch disease in aid-recipient countries: are there medicines to avoid an outbreak?
Author
Abstract
The idea of scaling up aid to developing countries has increased fears of Dutch Disease in the donor community and recipient countries. Through its impact on inflation and the exchange-rate, aid could slow down growth and human development, undermining the aims of donors and recipients. By using the basic model of Dutch Disease, adjusting it to the circumstance of developing countries and taking a medium-term view, we explain how it is possible to avoid Dutch Disease. Important factors determining the impact seem to be: the spending pattern of aid, the amount of imports financed with aid and the coordination between the fiscal and monetary authorities. As the IMF is one of the most important participants in the discussion around this topic, we also clarify the specific terms this institution uses to discuss this sort of topics. The paper ends with referring to the fact that understanding the problem is one thing, taking these economic decisions on a political level may in certain countries form another problem.
Language
English
Source (series)
IOB discussion paper / University of Antwerp. Institute of Development Policy and Management , 2007:05
Publication
Antwerpen : IOB, 2007
Volume/pages
41 p.
Full text (open access)
UAntwerpen
Faculty/Department
Research group
Publication type
Affiliation
Publications with a UAntwerp address
External links
Record
Identification
Creation 08.10.2008
Last edited 23.12.2015
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