Rabah Arezki and Ritwik Banerjee

Finance Development, March 2014, Vol. 51, No. 1

In recent years many developing economies, especially in sub-Saharan Africa, have found a new source of homegrown wealth that offers the same type of budgetary assistance as development aid—with none of the strings that donor countries often attach to how it can be used or reforms countries must make to continue receiving it. Across Africa, discoveries of large oil fields are changing the financial picture for many developing economies.¬ The paper explores the impact of these discoveries on foreign aid and offers policy recommendations.