PPP Approach in Development Aid

Rational: Discussions on aid effectiveness have recently gained popularity and become more heated. One side points out that aid not only provokes corruption and, erodes social capital, but also chokes off export-growth due to the Dutch disease, just like the oil curse does. Aid is also claimed not to contribute to poverty reduction or economic growth in developing countries, and it is even claimed that current aid practice should be stopped (Moyo, 2009). The other side opposes this assertion, and maintains that aid has worked; the volume of aid should be increased to bridge the wide gap between the necessary investment and current level (Sachs 2005).