This paper models the inter-temporal allocation of foreign development aid to Papua New Guinea (PNG). A formal theoretical model of aid allocation is developed, in which aid to any one country is determined jointly with aid to all other recipient...
Japan has provided foreign aid for some 60 years. Japan’s aid has grown and evolved as it became richer and as the developing world changed too. Japan is a strong supporter of the Millennium Development Goals (MDGs) and revised its ODA Charter in...
The paper examines a wide range of issues relating to the mix between loans and grants as well as the degree of concessionality of loans. A number of empirical tests are carried out based on annual panel data over 1970 to 1999 for 22 donor countries...
Finn Tarp The current global development agenda is centred on the Millennium Development Goals (MDGs), established at the turn of the Millennium. They...
21 March 2013 In foreign aid, results are the buzz word of the day; evaluation, monitoring, and quality control are the means of demonstrating to...
9 May 2013 Carl-Gustav Lindén The world is a complex place where risk and uncertainty are an everyday challenge. Decision makers at all levels say...
Tony Addison Today, there is much frustration with the financial sector. Society’s precious savings are not being put to the best of uses—investing...
23 April 2014 Justin Yifu Lin and Yan Wang At the onset of its miraculous rise in 1979, China had been trapped in poverty for centuries and was poorer...
Policy coherence implies that donors in pursuing domestic policy objectives should avoid adversely affecting the development prospects of poor countries. To achieve policy coherence donors and multilateral institutions need to ensure security and...
David L. Richards Over the past decades, the terms ‘human rights’ and ‘human development’ have been characterized as being: complementary to one...
Danielle Resnick During the last month, three democracies in Africa witnessed incumbent presidents exit office in very different ways. The most...
Tony Addison, Tseday Mekasha, Milla Nyyssölä, Lucy Scott, Finn Tarp, Tuuli Ylinen To meet development objectives, aid recipients and their donor...
Carl-Gustav Lindén One important part of ReCom–Research and Communication on Foreign Aid is the sharing of results. October saw the largest effort so...
This paper surveys 50 years of empirical research on the macroeconomic impact of aid, looking mainly at studies examining the link between aid and growth. It argues that studies dating until the late 1990s produced either contradictory or...
‘In a very real sense, the conditions that spawned the war and inflicted gruesome casualties on Sierra Leone’s citizens have not disappeared’, warned the International Crisis Group. In this paper we argue that many of those conditions are being...
This article examines the external and internal dimensions of post-conflict reconstruction in Sierra Leone. The United Nations, bilateral donors such as the United Kingdom, and transnational non-governmental organizations and aid agencies have been...
Peace can generate an economic dividend, which can be further increased by appropriate economic reform. This dividend can in turn be used to raise popular support for conflict resolution measures along the road to achieving a final political...
Debt relief and the scaling up of aid to low-income countries should allow for greater fiscal space for expenditure programmes to create long-term growth and lower poverty rates. But designing a suitable medium-term fiscal framework that fosters a...
The study seeks to identify donor-specific factors that cause donors to delay aid disbursement, and to apply a double standard in dealing with the non-compliance of a recipient with regard to aid conditionalities, a practice that promotes uncertainty...
Several countries in Africa – including Ghana, Kenya, Mozambique, Tanzania, and Uganda - have recently discovered large oil and gas or other mineral...
The present paper is a first attempt to develop a theoretical model using a short-term vis-à-vis long-term contract framework within which donor countries’ endorsement or rejection decision towards the recently proposed International Finance Facility...
There is a widespread view that political criteria have received less emphasis in aid allocation since the end of the cold war, with a greater share of aid subsequently being based on developmental criteria. An observed increase in aid effectiveness...
This paper investigates how people created, adapted and used social capital and conflict resolution during more than a decade of violent conflict in Liberia, and the potential of such capital to contribute to post-conflict peacebuilding and self...
The Millennium Development Goals (MDGs) have lofty expectations regarding the impact of official development aid. Are these expectations valid? This paper surveys the literature on aid and growth. It finds that practically all aid studies since the...
Public policies often involve choices of alternatives in which the size and the composition of the population may vary. Examples are the allocation of resources to prenatal care and the design of aid packages to developing countries. In order to...
The paper builds on recent empirical evidence on the importance of strategic donor behaviour in aid allocation in order to develop a theoretical model where donor pressure on a recipient for influencing the aid disbursement of a multilateral...
Countries as diverse as Afghanistan, Angola, and Sierra Leone are now attempting to recover from major wars, often amidst continuing insecurity. The challenge is to achieve a broad-based recovery that benefits the majority of people. The economic and...
Issues related to the volatility of aid flows are now becoming crucial in view of their relevance to the achievement of the Millennium Development Goals. The paper examines aid volatility using data for 66 aid recipients over the period 1973-2002. We...
This paper summarises research on aid allocation and effectiveness, highlighting the current findings of recent research on aid allocation to fragile states. Fragile states are defined by the donor community as those with either critically poor...
The paper uses an aid disaggregation approach to examine the impact of different types of aid on the fiscal sector of the aid-recipient country. It uses time-series data on different types of aid (project aid, programme aid, technical assistance and...
The paper contributes to the empirics of aid and growth by taking a fresh look at the aid-policies-growth nexus emanating from the very influential but also debatable paper on the subject by Burnside and Dollar: ‘Aid, Policies and Growth’. We employ...
Much public discussion about foreign aid has focused on whether and how to increase its quantity. But recently aid quality has come to the fore, by which is meant the efficiency of the aid delivery process. This paper focuses on one process problem...
Ghana’s tax reforms constitute the major policy instrument needed to accelerate growth and poverty reduction. Over the past two decades, the government has consistently spent more revenue than it is able to generate and the gap is often financed with...
This paper examines the impact of foreign aid on public sector fiscal behaviour in Côte d’Ivoire. A special interest is the relationship between aid, debt servicing and debt, given that Côte d’Ivoire is a highly indebted country. The theoretical...
Studies of the inter-recipient allocation of aid may be categorized threefold. First, there are those which attempt to explain the observed allocation of aid. Second, there are those which seek to describe or evaluate the allocation of aid against...
The paper considers the political obstacles and supports for additional development finance and a number of possible devices through which advantage may be taken of the supports and the obstacles circumvented. It emphasizes the need for effective...
This paper surveys recent research on aid and growth. It also provides an overview of research on inter-recipient aid allocation. The overall focus of the paper is on the relevance of these issues for poverty-efficient aid, defined as a pattern of...
Understanding the development effects of official aid is crucial to building a better bridge between research and policy. This paper reviews the current evidence regarding the impact of aid on growth and poverty reduction, and develops a new...
This paper considers lessons from the practice of fiscal federalism for guidance on new approaches to development finance. Despite the fact that inter-regional redistribution in a federation relies on a central government with strong fiscal powers...
In analysing proposals for new sources of development funding, there are several issues that arise across the board. What is the role of new sources in relation to existing overseas development assistance? Should we be seeking new sources that...
Remittances, after foreign direct investment, are currently the most important source of external finance to developing countries. Remittances surpass foreign aid, and tend to be more stable than such volatile capital flows as portfolio investment...
The UNU-WIDER research programme on foreign aid (ReCom) began in 2010, in a period of strong aid scepticism. Dambisa Moyo’s well-known book, Dead Aid...
Efforts to realize the issue of development-focused Special Drawing Rights (SDR) by the International Monetary Fund (IMF) have been on-going for many years. Recently, however, the campaign first gained a new momentum immediately after the Asian...
This study revisits the effect of aid on the quality of institutions and examines the effects of a major source of instability, namely terms-of-trade instability, on the quality of democracy. We take advantage of previous empirical findings which...
The real value of official aid flows fell for much of the 1990s, and private capital flows to low-income countries remain mostly limited. The decline in aid flows may endanger the development process, since they finance much of the development budget...
The real value of official aid flows fell for much of the 1990s, and private capital flows to low-income countries remain mostly limited. The decline in aid flows may endanger the development process, since they finance much of the development budget...
In academic discourse, it has become almost ritualistic to begin a piece on foreign aid by highlighting the sharp controversies over its effectiveness...
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