Excerpt from Transparency International website: "...Corruption in aid is generally associated with: (a) grand corruption or corruption in major contracting projects involving public officials or politicians and private companies (b) corruption of domestic origin in the recipient country spilling over into foreign assistance, mainly in the form of petty corruption (c) corruption that is directly linked to internal policies and practices of donors themselves...A common argument is that foreign aid presents perverse incentives to recipient governments by, for example, investing in sectors not prioritised by the government...Privatisation policies are criticised for creating opportunities for corruption in countries with weak regulatory capacities. Aid agencies are also accused of ignoring, or even denying, evidence of systematic corruption and large-scale capture, especially if the disbursement of their own aid money is not directly involved...Within the academic discourse it has been argued that aid flows, much like natural resources, provide opportunities for wealth. They can be spent on public investment or be diverted for private use by public officials. According to Coolidge and Rose-Ackerman (2000) aid can also be diverted by governing elites towards projects that provide more opportunities for rent seeking such as capital-intensive projects versus community-controlled and basic needs programs..."

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