'This accessible book is a powerful critique of the effectiveness of development aid. It skilfully combines a wealth of practical experience with a thorough examination of recent academic research. It will certainly challenge the defenders of aid to rethink their position for the twenty-first century.' - John Toye, Department of Economics, Oxford, UK 'This is an excellent book; interesting and extremely well written. It offers a masterly survey of existing work in the field and will have a wide appeal amongst policymakers and academic economists with an interest in development.' - A.P. Thirlwall University of Kent, Canterbury, UK 'This book makes a significant contribution by examining an important issue, namely, the effects of foreign aid on development. The author provides an insightful critical review of the relevant academic literature, and presents a careful evaluation of recent foreign aid initiatives and approaches. The reader is struck by the author's painstaking and wide-ranging research on the subject, interspersed with thoughtful comments based on his own experiences. Scholars and practitioners working on development will find much that is insightful, informative, provocative and stimulating.' - Amitava Krishna Dutt, University of Notre Dame, US In spite of massive flows over the past 50 years, aid has failed to have any significant impact on development. Marginalization from the world economy and increases in absolute poverty are causing countries to degenerate into failed, oppressive and, in some cases, dangerous states. To address this malaise, Ashok Chakravarti argues that there should be more recognition of the role economic and political governance can play in achieving positive and sustainable development outcomes. Using the latest empirical findings on aid and growth, this book reveals how good governance can be achieved by radically restructuring the international aid architecture. This can be realised if the governments of donor nations and international financial institutions refocus their aid programs away from the transfer of resources and so-called poverty reduction measures, and instead play a more forceful role in the developing world to achieve the necessary political and institutional reform. Only in this way can aid become an effective instrument of growth and poverty reduction in the 21st century. Aid, Institutions and Development presents a new, thoroughly critical and holistic perspective on this topical and problematic subject. Academics and researchers in development economics, policymakers, NGOs, aid managers and informed readers will all find much to challenge and engage them within this book.