  Every year, substantial resources are allocated to foreign aid with the aim
of catalyzing prosperity and development in recipient countries. The diverse
body of research on the relationship between aid and gross domestic product
(GDP) has yielded varying results, finding evidence of both positive, negative,
and negligible associations between the two. This study employs econometric
techniques, namely Fully Modified Ordinary Least Squares Regression (FMOLS) and
the Generalized Method of Moments (GMM), to explore the intricate links between
innovation and different types of official development assistance (ODA) with
the overarching construct of prosperity. The paper also reviews the linkages
between foundational metrics, such as the rule of law, education, and economic
infrastructure and services, in enabling self-sustaining prosperity. Drawing
upon panel data of relevant determinants for 74 countries across the years 2013
to 2021, the study found that there was a negligible relationship between both
ODA and innovation indices with prosperity. Notably, foreign aid targeted
specifically toward education was observed to have a positive impact on
prosperity, as was the presence of rule of law in a state. The results of the
study are then examined through the lens of a case-study on Reliance Jio,
exemplifying how the company engineered an ecosystem that harnessed resources
and facilitated infrastructure development, thereby contributing to
self-sustaining economic growth and prosperity in India.
