Aid, Policy And Growth

1601 Words Feb 4th, 2016 7 Pages
Larry L. Day

Aid, Policy and Growth: The Case of St. Lucia

Abstract

This paper takes a look at aid, policy and growth literature using data from St. Lucia, a country that received $24,000,000 US dollars in 2014. Our findings suggest that aid, in the presence of sound economic policy, does not contribute to growth in St. Lucia. However, this study does find statistical evidence to suggest that democratic governance and openness and monetary policy does impact the effectiveness of aid in St. Lucia.

Politics, Governance and institutions in St. Lucia

Saint Lucia is a Commonwealth realm; Queen Elizabeth II is the Head of State, represented on the island by a Governor-General. Executive power, however, is in the hands of the Prime Minister and his cabinet. (Lucia, 2008) The prime minister is normally the head of the party commanding the support of the majority of the members of the House of Assembly, which has 17 seats. (Lucia, "Members of the House of Assembly", 2008) The other chamber of Parliament, the Senate, has 11 appointed members.
Stamp with portrait of Queen Elizabeth II, 1953 Saint Lucia is a two-party parliamentary democracy. Five political parties participated in the 28 November 2011 General Election. Dr Kenny Anthony of the St Lucia Labour Party won eleven of the seventeen seats. Saint Lucia is a full and participating member of the Caribbean Community (CARICOM), Organization of Eastern Caribbean States (OECS) and La Francophonie. (Lucia,…
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