Based on a historical examination of foreign aid, Professor Krasner provided reasons why foreign aid has succeeded and failed. Fields where foreign aid has succeeded were health and green initiatives. Dr. Krasner attributed these successes to proper targeting by donors, execution of simple stand alone tasks, and a non dependency on national governance capability. Dr. Krasner stated that foreign aid failed due to the lack of accountability for donors, weak conditionality provided by donors, and the incapability of donors to have sufficient knowledge of local institutions and circumstances. Dr. Krasner stated that South Korea is the only nation to have successfully become a donor country after being a recipient country and its success could contribute to the success of future foreign aid. He concluded his lecture by asking whether South Korea should continue to follow the Japanese model where aid leads investment or whether to create its own model.
On October 19 Stephen D. Krasner, Graham H. Stuart Professor of International Relations at Stanford University delivered a Lecture titled “Foreign Aid: A Fool’s Errand?” at the Asan Institute for Policy Studies.