Aid and Reform in Failing States.
This paper reviews the policy implications of research on reform in failing states (Chauvet and Collier 2006, 2007a, 2007b, 2008; Chauvet et al. 2006; Chauvet et al. 2007a, 2007b). After providing a precise definition of state failure and reform in such states, we present the internal constraints impeding reform in failing states. Elite preferences and insufficient social knowledge seem to be the major constraints on reform. We find that financial aid tends to allow the ruling elite to postpo...Expand abstract
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