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University of Macau / Faculty of Social Sciences and Humanities / Department of Government and Public Administration

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published_or_final_version / Politics and Public Administration / Doctoral / Doctor of Philosophy

Foreign aid is a relatively new form of economic exchange between nations, yet in only a few decades it has become a persistent structural element of the modern world-system. Conventional theories of economic development view foreign aid as a "flow" of financial resources into an economy and argue that it accelerates economic growth in the less developed countries by supplementing the domestic capital resources that are available for development. Dependency theory and the world-system perspective conceive of foreign aid as a "structural" feature of the recipient economy and suggest that it retards economic growth in these countries by reproducing the structural distortion of the economy that was originally established by colonialism and by systematically limiting the ability of the peripheral state to control the development of its economy. These theories suggest contradictory findings which are tested in this dissertation with multiple regression analysis. The analyses parallel the seminal research of Bornschier et al. (1978) on foreign investment and economic growth by simultaneously estimating the effects of both short-term flows and long-term stocks of foreign aid on economic growth. Using a sample of 91 Third World countries, the effects of foreign aid on economic growth are estimated both during a period of relative expansion of the world economy (1970-1978) and during a period of relative recession (1978-1986). My findings lend some support to both theoretical perspectives but the direction of the effects are opposite to those predicted by Bornschier et al. Foreign aid is found to have short-term negative effects on economic growth during both time periods but long-term positive effects on economic growth are statistically significant only for the later time period. The findings from this research clearly suggest that the dependency and world-system perspective must modify its theoretical explanations concerning the relationship between foreign capital flows and economic development to take into account the varied uses of different types of financial resources. They also highlight the importance of recognizing that different phases of the expansion and contraction of the world economy may condition the effects of specific types of core-periphery interactions.

Urban landscapes have become the dominant form ofliving environments around the world. It is now estimated that over half the world's population live in a city or urban landscape, with this figure constantly increasing (World Bank Group; 2005). Cities now dominate as economic, social and political hubs, featuring as the central core for essential functions of daily life. Because of the prominence and the ever-increasing importance cities play, they have become focal sites for future developmental interventions and opportunities. The dominance of urban living has brought with it both positive and negative consequences, as cities are the sites of great growth opportunities, but also of dire poverty and inequality challenges. Inner cities generally feature as the central focal area of urban environments, the core region of the city, and as a consequence of numerous impacting factors, are increasingly exhibiting compounded difficulties. Cities in both the North and the developing South are increasingly being placed at the front line in the international developmental arena, as sites for potential improvement and beneficial welfare. This is evident in the campaigns lead by most prominent international development agencies concentrating on urban populations and problems. They are priority sites for the eradication of growing challenges such as poverty and inequality, and for enhancing developmental opportunities. Due to the sheer number ofproblems and complicated interactions, it is increasingly evident that cities are complex entities in need of effective, efficient, equitable management and development. These are the main issues explored throughout this research. The concerns will be viewed from an international perspective, looking at current trends and debates, as well as a more detailed investigation into how they play out in the South Africa urban context. The research makes use of a case study example, Newtown Cultural Precinct in Johannesburg, to examine nuanced, localised urban complexities and possible regeneration strategies to counter them. The aim is to explore concerns and issues within a specific case study example and examine what implications these understandings may offer for other urban contexts. Numerous key findings and important conclusions were reached through the case study investigations, which hold vital lessons for future inner city regeneration projects, as well as issues pertinent to dynamic and changing urban environments. / Thesis (M.A.)-University of KwaZulu-Natal, 2008.