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Erich Strcissler University of Vienna AUTOMATION 17 References Böhm-Bawerk, E. (1890), ‘The Austrian economists’, Annals of the American Academy of Political and Social Science, 1. Böhm-Bawerk, E. (1959), Capital and Interest, 3 vols, South Holland, 1. Menger, C. Hoselitz, Glencoe, Ill. ) Mises, L. (1949), Human Action: A Treatise on Economics, 3rd edn, New Haven. Schumpeter, J. (1952 ), The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest and the Business Cycle, 5th edn, Cambridge, Mass.
However, such calculations are subject to the objection that the grant element in aid from the donor’s point of view may differ from that from the recipient’s point of view. In DAC aid in 1981, some 75 per cent was direct grants and the loans had a 58 per cent grant element, resulting in an ‘overall grant element’ for total aid of 89 per cent. The Development Assistance Committee is the main source of aid statistics, and its tabulations and definitions are generally recognized as authoritative.
The line of division between export credits and tied aid of this kind is clearly a thin one. Moreover, many acts of commercial policy, such as reduction of tariffs or preferential tariff treatment given to developing countries under the internationally agreed GSP (Generalized System of Preferences) can be more effective aid than many transactions listed as aid—yet they are excluded from the aid concept. The third criterion—that the aid should be concessional and include a grant element—is also not easy to define.