| Abstract: |
The increasing amount of provided development aid together with unconvincing outcomes, especially in Sub-Saharan Africa, has raised debates about its effectiveness. Development aid should increase the investment and by doing so it should stimulate the economic growth of the recipient country. The first part of this paper is concerned with how development aid works in growth models. At the same time, the objectives of development aid are presented as defined within the Millennium Declaration. The second part focuses on the actual causes of ineffectiveness, such as inaccurate allocation or unsuitable form of aid. Finally, alternative proposals are also indicated, which could lead to increased quality of provided development aid and therefore to its effectiveness. |
