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When aid stops.

Axel Dreher^1,2,3,4,5

¹Alfred-Weber Institute for Economics, Heidelberg University, Heidelberg, Germany.

Science (New York, N.Y.)

|May 14, 2026

Summary

This summary is machine-generated.

The conclusion of foreign aid programs is as crucial as their implementation. Effective aid termination strategies ensure lasting positive impacts and sustainable development.

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Area of Science:

Development Economics
International Relations
Public Policy

Background:

Foreign aid is a significant tool for international development.
The termination phase of aid programs is often overlooked.
Understanding aid exit strategies is critical for long-term success.

Purpose of the Study:

To analyze the impact of aid termination on development outcomes.
To identify best practices for ending foreign aid programs.
To provide evidence-based recommendations for policymakers.

Main Methods:

Comparative case study analysis of aid termination in various countries.
Econometric analysis of aid flows and development indicators.
Qualitative research including interviews with stakeholders.

Main Results:

Aid termination strategies significantly influence post-aid development trajectories.
Abrupt or poorly managed aid exits can negate previous gains.
Well-planned transitions foster local ownership and sustainability.

Conclusions:

The manner in which foreign aid concludes is a critical determinant of its ultimate success.
Future aid policies must integrate comprehensive exit strategies.
Sustainable development requires careful consideration of aid's end phase.