Synopsis
This work provides an analysis of the micro-economic performance of foreign aid in Nepal, a traditional agricultural economy heavily dependent on external aid. The main objectives of the study are: to examine the socio-cultural and political constraints to development; to find out the source and sector allocation of aid over the past three decades; to evaluate the macro-economic impact of aid on the economy; and to analyze the policy implications for aid and development in the future. This study aims to focus on the environmental relationship between aid and the number of structural and institutional variables which might be useful to examine in judging whether aid does or does not work.