Import support aid: experiences from Tanzania and Zambia

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Book

Title:	Import support aid: experiences from Tanzania and Zambia
Author:	White, H.
Year:	1994
Issue:	177
Pages:	28
Language:	English
Series:	Working papers, General series (ISSN 0921-0210)
City of publisher:	The Hague
Publisher:	Institute of Social Studies
Geographic terms:	Tanzania Zambia
Subjects:	financial aid imports
External link:	https://hdl.handle.net/1765/18882
Abstract:	Import support has become an important form of aid - accounting for more than half of all aid from some donors to Tanzania and Zambia. This paper finds that import support aid is largely effective: there is no evidence that the money is used for undesirable luxury imports; beneficial effects on capacity utilization and output can be observed; it is a form of aid which manages to reach the private sector; and donors have adopted procedures to avoid potential adverse consequences of counterpart funds. The management of import support schemes is also discussed - market-based schemes being preferable to administrative ones, and market-oriented reforms being required for a well functioning import support system. The paper concludes by arguing that donors should not place controls on the use of aid for import support, but rather devote their resources to assisting in the successful implementation of government activities which are supported by the counterpart funds.