Publisher's Synopsis
This volume argues on economic arguments that an internationally coordinated move towards EC - or even OECD-wide untying should be seriously considered. First, the empirical evidence in the book suggests it to be unlikely that aid-tying produced significant macroeconomic benefits in the donor economies. Furthermore, similar to the costs for the donor's national budget there are also tying costs for the recipients. Third, as far as aid-tying creates a 'rent' within the protected business community, this 'rent' is seldom transferred to the recipients. Finally, the linkage between aid-tying and the domestic constituency for aid seems rather weak. The economic analysis is placed against the background of recent policy discussions and decision-making on the issue, both in EC - and OECD-framework and focuses especially on the Helsinki-package operating since 1992.
