Should Governments Condition against High Levels of Corruption When Donating Foreign Aid?

The effectiveness of foreign aid, after years of research, still remains ambiguous. Ways have been sought of how to improve aid effectiveness. This for example through conditioning for certain positive economic criteria. This thesis investigates whether literature and empirics provide a strong foundation for whether it would make sense to condition against high levels of corruption when donating aid. Results show that foreign aid does not contribute to economic growth. Therefore, putting conditions on foreign aid to improve economic growth makes no sense. If, however, it turns out that foreign aid does contribute to growth, conditioning against high levels of corruption makes sense since this has a very negative effect on the growth of an economy