This study examines the impact of foreign aid on the institutional quality (IQ) of the OIC countries. Using the data of OIC countries for the three-year average period from 1991 to 2016, the system...

Does foreign aid help or hinder the institutional quality of the recipient country? new evidence from the oic countries

This chapter deals with foreign aid—a major tool of external influence on countries in Africa and Asia, including the Muslim majority countries (MMCs). The chapter, in three major sections, deals with the concepts and parameters of studying foreign aid and economic development, facts and issues related to foreign aid and debt servicing in the MMCs, and the issues related to foreign aid and national economic development in the MMCs to show the relationships between aid dependency, debt servicing, and the HDI ranks. It concludes that foreign aid had no or minimal effects on the national development of the recipient countries, and that debt servicing expense of many MMCs is higher than the aid receipt and public expenses in education, health, or poverty alleviation program. The chapter highlights the importance of restructuring the MMCs’ economies to reduce aid dependency for higher HDI.

Foreign Aid, Foreign Debt, and Development: The Muslim World Scenario

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Foreign Aid, Foreign Debt, and Development: The Muslim World Scenario