Synergy: Journal of Business, Finance and Management
Vol. 1 No. 1 (2025): Synergy: Journal of Business, Finance and Management

Economic Aid as a Catalyst for Sustainable Development: A Critical Literature Review

Muhammad Rafi Dhia (Universitaas Muhammadiyah Jakarta, Indonesia)



Article Info

Publish Date
16 Dec 2025

Abstract

This study critically reviews the role of economic aid in fostering sustainable development by synthesizing theoretical insights and empirical evidence from recent literature. Economic aid, provided in various forms such as financial grants, technical assistance, and concessional loans, aims to alleviate poverty, promote economic growth, and support environmental sustainability. However, its effectiveness remains contested due to varying outcomes across different governance contexts. The review identifies key factors influencing aid effectiveness, including institutional quality, policy alignment, absorptive capacity, and accountability mechanisms. Evidence suggests that aid yields more positive and lasting outcomes when recipient countries exhibit sound governance, implement strategic reforms, and integrate sustainability principles into development planning. Conversely, aid that lacks contextual sensitivity or fosters dependency may undermine long-term progress. By examining diverse perspectives, this study contributes to the discourse on optimizing economic aid to address global challenges such as inequality, environmental degradation, and climate resilience. The findings underscore the need for adaptive, participatory, and evidence-based aid frameworks that support inclusive and sustainable development pathways.

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Journal Info

Abbrev

sjbfm

Publisher

Subject

Description

Synergy: Journal of Business, Finance and Management (SJBFM) publishes selected articles based on research and literature studies relevant to the fields of entrepreneurship, accounting, and management. SJBFM is published 3 (three) times a year, in January-April, May-August and September-December. ...