Econblogger examines the issue of aid and growth and raises this hugely important question:

the salutary effects of aid on growth raises serious questions about why there is an apparent struggle by heavily indebted developing countries to repay their loans.

Indeed.

But I’m really not ready to accept his conclusion:

debt relief can only be temporary, unless the root cause of the problem - spending and revenue policies of debtor governments - is decisively addressed

You see, I have this sneaking suspicion that the growth goes mainly into the pockets of the moneyed elite/industrialist families - and there to stay. The “spending and revenue policies of debtor governments” is a red herring.

Update: OK, maybe this IS a “revenue” issue. But a special case of one because these same people control the government, typically.