On the Impact of Reparations Payments for Slavery on Growth and Sustainable Development: Can Reparations Buy Growth? — Stefan Richards

By Stefan Richards

Abstract: Reparation refers to the repairing of damage through the payment of money or through other methods employed by the offending party. This paper adds to the discussion on reparations by relating the effect of foreign aid on economic growth to the effect of reparations payments for slavery on economic growth; thereby providing economic proof for viability of reparations. Previous academic papers on reparations do not support their claims with economic reasoning; rather, they are contented with providing a moral argument. I presented a simple framework where the effect of ODA disaggregated by donor and destination on economic growth was estimated. The findings indicate that ODA, when allocated appropriately, has an economically positive and statistically significant impact on growth and development. Therefore, reparations payments allocated appropriately will likely have economically positive and statistically significant impacts on growth and development. The paper ends with policy recommendations for the recipient country.