The withdrawal of traditional donors from Latin America

• In Event: Latin America in a world of high financial volatility

Abstract

For decades, several Latin American countries such as Nicaragua have received large amounts of aid from a multitude of OECD-DAC donors. From around 2007 onward, many traditional donors began to withdraw from Latin America. To some extent, this has been accompanied by the entry of new donors such as China and Venezuela. The aim of this paper is to analyze the effects of this change on the development of the aid recipient countries. We begin by discussing the existing knowledge on the effectiveness of traditional aid to Latin America. We then analyze what the changes in the donor landscape imply for Latin American countries in terms of financial flows and in terms of the conditions attached to aid. Finally, we present the results of an in-depth study of the effects of these changes in Nicaragua

Author

• Anneke Geske Dijkstra, Erasmus University Rotterdam