ARARAL, Eduardo

The strategic games that donors and bureaucrats play : an institutional rational choice analysis - Cary : Oxford University, oct. 2009

Foreign aid plays an important role in developing countries, but little is empirically known how it affects incentives of recipient bureaucracies. I provide a model and analytic case study to understand the strategic games that donors and bureaucrats play. My findings are broadly consistent with the theoretical expectations of institutional rational choice: bureaucrats attempt to ensure bureaucratic survival, whereas donors ensure growth of loan portfolio. These findings, however, are not consistent with the Samaritan's Dilemma and the Patron's Dilemma