Abstract
What is the role of foreign aid in macroeconomic stabilisation? This study addresses the ambiguous impact of aid on stabilisation reforms in the Gambia, Ghana, Guinea-Bissau, Kenya, Tanzania, Uganda, Zaire and Zambia. These countries have all received significant amounts of aid in connection with stabilisation attempts, but differ in their respective achievements. One important reason for the discrepancies appears to be that reform commitment as well as aid conditionality is more credible in some circumstances than others. A review of factors with potential influence on reforms suggests that stabilisation aid has been less effective in countries with a history of high levels of aid, and that stabilisation has followed on comprehensive reform programs which have not been undermined by preceding failed reform attempts.