F1GD 4555 - Political Economy of Development and Foreign Aid (New course)

***UPDATED for 2025/26***

Starting at the end of World War II, wealthier, industrialized states have taken to systematically aiding their less economically “developed” counterparts with financial and technical assistance, referred to as foreign aid. Over the decades, a particular set of aid-giving norms and practices were enshrined in an international foreign aid architecture that comprises a variety of actors like bilateral and international donors, governmental and nongovernmental recipients, large international organizations and smaller civil society organizations.

In this class, we address three main questions. First, some countries and regions of the world are more “developed” than others: what explains this variation? We consider the changing standards for what “development” is, and review theoretical models and empirical evidence as to how states go about achieving it. This includes proximal causes of economic growth, like capital, labor, and technology; more fundamental causes of economic growth, like geography, culture, and institutions; and causes of political development and democratization.

Second, we turn to the political economy of development assistance. We address questions of aid allocation –– who gives foreign aid to whom, how, and why? –– and of aid effectiveness –– does foreign aid work? We review traditional explanations that have to do with the needs of recipients and the strategic considerations of donors; as well as more recent, comprehensive frameworks that theorize about the kinds of places where donors have greater incentives to finance development. For example, when do donors engage the recipient government in the design and implementation of aid projects, and when do they bypass it in favor of nongovernmental partners? We consider the impact of development assistance on both intended and unintended consequences, from economic growth to democratization, the survival of political leaders, the quality of institutions, public opinion toward the donor country, and specific issues such as migration, the environment, and human rights.

Third, we question how the traditional foreign aid architecture has been changing in light of two recent phenomena: (i) the emergence of new donors that do not subscribe to the norms and practices of traditional aid-giving, such as China, Brazil, and a few Arab monarchies; and (ii) the rise of populist and nationalist sentiment in traditional donors.

In addition to covering these topics substantively, this course has two broad methodological goals. First, we practice a scientific approach to studying political phenomena. We think critically about how scholars in empirical social sciences theorize answers to research questions, derive testable hypotheses from those theories, and how they use evidence to test such propositions. We cover a host of theories and perspectives that allow us to think generally about these relationships. Second, we develop skills geared toward translating social science findings into public policy prescriptions. We learn to consume and produce policy briefs that identify the relevant literature on a given issue, the policy options available, and their evaluations in the relevant context.

Learning Outcomes

By the end of the course, students will:

• Understand the foundational theoretical models of economic and political development and some examples of their empirical applications
• Develop a nuanced understanding of the determinants of the allocation of development and humanitarian assistance, theoretically and empirically.
• Develop a nuanced understanding of the effectiveness of development and humanitarian assistance, theoretically and empirically.
• Critically compare and contrast development and humanitarian cooperation by traditional foreign aid donors vs. new and emerging donors.

Professional Skills

By the end of the course, students will:

• Become proficient in interpreting qualitative and quantitative policy evaluations, familiarize themselves with commonly-used data formats and sources.
• Be able to translate the findings of political economy research into actionable insight for policy prescription.

This course is designed for second-semester MA students. No specific prerequisites.

The instructor will provide oral feedback on the Weekly Reading Questions on a weekly basis, in class, by addressing the most important asked questions during the class meeting. She will provide oral feedback to group presentations to the presenting students at the end of the class meeting during which the presentation took place; presentation grades will be released after at least one third of students have had the chance to present. The instructor will release the Article Quiz grades within 10 days of the quiz. She will provide written feedback and a grade to the final exam at the end of the semester’s exam period.

• Weekly Reading Questions (10%): students submit 2-3 questions or comments about the assigned reading before the class meeting.
• Group Presentation (25%): in groups of 3-4 students, students give a 10-minute presentation of an assigned reading during a class meeting.
• Article Quiz (25%): in class, halfway through the semester, students answer a series of multiple-choice questions about an article that was assigned to read at home at least two weeks prior. This assesses their understanding of a peer-reviewed article in the field of political economy of foreign aid.
• Final Exam (40%): at the end of the semester, students will complete an in-person assignment on the basis of the material covered in class and of an article provided for the final.

• In Class Presence: 2 hours a week / 24 hours a semester
• Online learning activities: 0 hours a week / 0 hours a semester
• Reading and Preparation for Class: 3 hours a week / 36 hours a semester
• Research and Preparation for Group Work: 2 hours a week / 24 hours a semester
• Research and Writing for Individual Assessments: 3 hours a week / 36 hours a semester