Download or read book Aid Proliferation written by Arnab Acharya and published by . This book was released on 2004 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: The problem of the proliferation of aid donors and channels continues to worsen. It undermines the value of aid. We contribute to the existing literature by (a) categorising the apparent adverse effects of proliferation; (b) producing a reliable and fair indicator of the extent to which the main bilateral donors proliferate or concentrate their aid; (c) explaining why some donors proliferate more than others; (d) constructing a reliable measure of the extent to which recipients suffer from the problem of fragmentation in the sourcing of their aid; and (e) demonstrating that the worst proliferators among the aid donors are especially likely to be suppliers of aid to recipients suffering most from fragmentation. There are significant implications for aid policy.

Download or read book Aid and Growth written by Raghuram Rajan and published by International Monetary Fund. This book was released on 2005-06-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effects of aid on growth-- in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after this correction, we find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings, which relate to the past, do not imply that aid cannot be beneficial in the future. But they do suggest that for aid to be effective in the future, the aid apparatus will have to be rethought. Our findings raise the question: what aspects of aid offset what ought to be the indisputable growth enhancing effects of resource transfers? Thus, our findings support efforts under way at national and international levels to understand and improve aid effectiveness.

Download or read book Aid Growth and Poverty written by Jonathan Glennie and published by Springer. This book was released on 2016-05-30 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors discuss the impact of foreign aid and tackle the question of why assessing the impact of aid is so difficult. The authors focus on peer-reviewed, cross-country studies published over the last decade and draw together some global-level assessments, considering the context and conditions under which aid might be said to ‘work’. Glennie and Sumner argue that the evidence in four areas shows signs of convergence that may have direct relevance for policy decisions on aid and for aid effectiveness discussions. These are as follows: Aid levels (meaning if aid is too low or too high); Domestic political institutions (including political stability and extent of decentralisation); Aid composition (including sectors, modalities, objectives and time horizons); and Aid volatility and fragmentation. Notably, this study finds that there is no consensus that the effectiveness of aid depends on orthodox economic policies.

Download or read book Can Donor Coordination Solve the Aid Proliferation Problem written by Aminur Rahman and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper augments Holmstrom s (1982) team production model in the context of aid effectiveness. The analysis shows how donor proliferation leads to inefficient supply of aid in the recipient country because of the free-riding problem faced by the donors. The empirical findings support the theoretical prediction with regard to donor proliferation. However, this raises the question whether the current efforts in the international aid community with regard to donor coordination can in fact solve the aid proliferation problem.

Download or read book Foreign Aid Allocation Governance and Economic Growth written by Kamiljon T. Akramov and published by University of Pennsylvania Press. This book was released on 2012-05-22 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: How important is foreign aid in fostering economic growth in developing countries? Does it help recipient countries, hurt them, or have little effect either way? Foreign Aid Allocation, Governance, and Economic Growth investigates this issue by looking at foreign aid by sector rather than treating it as an aggregate amount. Aid can be allocated to a recipient's production sectors (such as agriculture, manufacturing, or mining), economic infrastructure (such as transport, storage, or communications networks or power generation facilities), or social sectors (such as education or healthcare). This book differentiates among various channels through which each of these three categories of foreign aid affects economic growth. The findings suggest that economic aid, including aid to production sectors and economic infrastructure, contributes to economic growth by increasing domestic investment. Aid to social sectors, however, does not appear to have a significant impact on human capital (measured by school enrollment) and economic growth. This study also assesses the degree to which the quality of democratic governance in a recipient country influences foreign aid's effectiveness and finds that democracy is no guarantee of aid effectiveness. In fact, economic aid to less democratic countries can lead to better economic growth, at least initially, provided the aid recipients secure property rights and allow capital accumulation. Although further research into the question is necessary, Foreign Aid Allocation, Governance, and Economic Growth suggests that aid targeted to increasing domestic investment might be an effective means of fostering economic growth in less developed countries.

Download or read book The Economics of Aid written by J. M. Healey and published by Taylor & Francis. This book was released on 2010-11-29 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: First published in 1971, this reissue considers the main aspects of foreign aid to developing countries in terms of economic concepts and principles. The author gives an economic definition of aid and considers the motives for giving aid and the principles on which it may be allocated. He looks at the effect on the economic growth of developing countries of both the aid given and the need to repay the debt, and the effect on trade patterns and resource allocation of tying aid to one particular project, or one source of goods. While economic analysis is only a first step in providing a basis for policy decisions on foreign aid, Dr Healey shows that many issues can be clarified by looking at them from the economists’ point of view.

Download or read book Foreign Aid and Economic Growth written by Janine L. Bowen and published by Routledge. This book was released on 2019-05-23 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: Published in 1998, this book provides an empirical analysis of the impact of foreign economic aid in 67 developed countries over a 19 year period. The results include the relationships between aid and growth and the implication that methodologies traditionally used have been largely responsible for inconsistent findings in the past.

Download or read book Assessing Aid written by and published by World Bank Publications. This book was released on 1998 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.

Download or read book Aid Project Proliferation and Absorptive Capacity written by David Roodman and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: At a time when the international dialogue surrounding development is focused on increasing the quantity of aid, this paper focuses on how the donor community can improve the quality of foreign assistance. The author discusses the problem of project proliferation, and the tendency of developing countries who receive aid to become overburdened by the costs of administering aid projects. Using a sophisticated mathematical modeling process, the author analyzes the relationship between total aid and recipient activity, and the distribution of projects by size. The conclusions hold insights for policy-makers: when projects proliferate beyond a certain point, the effective marginal utility of aid declines sharply, and can even become negative. This negative effect of aid on development can be especially true if the aid delivery process drifts away from the goal of poverty reduction. In practice, therefore, the author suggests that when countries reach their absorptive capacity, aid dollars given beyond that point lose much of their effectiveness. This paper is part of the Center for Global Development's ongoing work on aid effectiveness. To learn more about the potential negative effect of aid on development, and specifically institution-building, read Working Paper 71, "Fiscal Implications of Large Aid Increases."

Download or read book Foreign Aid Reconsidered written by Roger Riddell and published by . This book was released on 1987 with total page 332 pages. Available in PDF, EPUB and Kindle. Book excerpt: A review of the theoretical debates around aid.

Download or read book Changing the Conditions for Development Aid written by Neils Hermes and published by Routledge. This book was released on 2019-05-23 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1998 the World Bank published a report entitled "Assessing Aid: What Works, What Doesn't and Why". This report presents the results of an extensive investigation into the effectiveness of development aid. The main message of the text of the report is that development aid helps, but only when there is a good policy environment in the recipient countries, that is when there is sound macroeconomic management and when robust government institutions exist. It stresses that it is a myth to think that good policies can be bought by giving development aid: giving aid conditional on policy reforms does not lead to improved economic policies. The conclusion of the World Bank report is that aid flows should be directed only to countries with sound policies and that it should be focused more on supporting governments in reforming entire sectors, rather than on specific development projects. The "Assessing Aid" report has led to heated debates, both among academics and policy-makers, about development aid and aid policies. Many have questioned the methodology used, the results and the policy conclusions of the report. This book aims to contribute to the ongoing discussion about the future of development aid. In particular, it re-examines a number of issues that are crucial to the analysis and to the conclusions of the World Bank report. In this study the authors aim to put the discussion on the future of development aid into perspective and summarise the main findings of the other studies in this collection. They focus on two issues: the aid effectiveness debate before and after the Assessing Aid report, and the discussion on policy conditionality and good governance. Section II provides a brief survey of past research on aid effectiveness, that is, before publication of the Assessing Aid report and summarises the main findings of the World Bank report on aid effectiveness. In this study the authors aim to put the discussion on the future of development aid into perspective and summarise the main findings of the other studies in this collection. They focus on two issues: the aid effectiveness debate before and after the Assessing Aid report, and the discussion on policy conditionality and good governance. Section II provides a brief survey of past research on aid effectiveness, that is, before publication of the Assessing Aid report and summarises the main findings of the World Bank report on aid effectiveness.

Download or read book Competitive Proliferation of Aid Projects written by David Roodman and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proliferation of aid projects may overburden recipient governments with reporting requirements, donor visits, and other administrative overhead, siphoning off scarce domestic recipient resources, such as tax revenue or the time of skilled government officials, from directly productive use. But greater oversight may also improve the administration of projects, increasing development. I present a model of aid projects that reflects both sides of this coin. It posits a distinction between national-level governance and project-level governance. A donor can raise project-level governance above the baseline national level by requiring oversight activities of the recipient, although the benefits from doing so are less where national-level governance is already high. The model assumes that larger projects demand proportionally less oversight activity from the recipient. Comparative statics analysis suggests that to maximize development, projects should be larger where aid volume is higher, to avoid overburdening recipient administrative capacity; where recipient resources are scarcer, for the same reason; and where national governance is good, since the marginal benefit of oversight is then lower. A multi-donor generalization shows how donors that are imperfectly altruistic, caring most about the success of their own projects, will tend to sink into competitive proliferation, in which each donor subdivides its aid budget into smaller projects to raise the marginal productivity of the recipient's resources in those projects and attract them away from other donors. The inefficiency arises from the lack of a market among donors for recipient resources. In a Nash equilibrium, competitive proliferation reduces overall development. But the smallest (selfish) donors can gain. This would discourage them from cooperating with other donors to contain competitive proliferation.

Download or read book The Fragmentation of Aid written by Timo Casjen Mahn and published by Springer. This book was released on 2016-08-31 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edited volume provides an assessment of an increasingly fragmented aid system. Development cooperation is fundamentally changing its character in the wake of global economic and political transformations and an ongoing debate about what constitutes, and how best to achieve, global development. This also has important implications for the setup of the aid architecture. The increasing number of donors and other actors as well as goals and instruments has created an environment that is increasingly difficult to manoeuvre. Critics describe today's aid architecture as 'fragmented': inefficient, overly complex and rigid in adapting to the dynamic landscape of international cooperation. By analysing the actions of donors and new development actors, this book gives important insights into how and why the aid architecture has moved in this direction. The contributors also discuss the associated costs, but also potential benefits of a diverse aid system, and provide some concrete options for the way forward.

Download or read book Foreign Aid Allocation Governance and Economic Growth written by Kamiljon T. Akramov and published by International Food Policy Research Institute. This book was released on 2012-04-17 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: How important is foreign aid in fostering economic growth in developing countries? Does it help recipient countries, hurt them, or have little effect either way? Foreign Aid Allocation, Governance, and Economic Growth investigates this issue by looking at foreign aid by sector rather than treating it as an aggregate amount. Aid can be allocated to a recipient's production sectors (such as agriculture, manufacturing, or mining), economic infrastructure (such as transport, storage, or communications networks or power generation facilities), or social sectors (such as education or healthcare). This book differentiates among various channels through which each of these three categories of foreign aid affects economic growth. The findings suggest that economic aid, including aid to production sectors and economic infrastructure, contributes to economic growth by increasing domestic investment. Aid to social sectors, however, does not appear to have a significant impact on human capital (measured by school enrollment) and economic growth. This study also assesses the degree to which the quality of democratic governance in a recipient country influences foreign aid's effectiveness and finds that democracy is no guarantee of aid effectiveness. In fact, economic aid to less democratic countries can lead to better economic growth, at least initially, provided the aid recipients secure property rights and allow capital accumulation. Although further research into the question is necessary, Foreign Aid Allocation, Governance, and Economic Growth suggests that aid targeted to increasing domestic investment might be an effective means of fostering economic growth in less developed countries.

Download or read book Foreign Aid and Recurrent Cost written by Yutaka Arimoto and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent empirical studies reveal that effectiveness of aid on growth is ambiguous. The authors consider aid proliferation - excess aid investment relative to recurrent cost - as a potential cause that undermines aid effectiveness, because aid projects can only produce sustainable benefits when sufficient recurrent costs are disbursed. They consider the donor's budget support as a device to supplement the shortage of the recipient's recurrent cost and to alleviate the misallocation of inputs. However, when donors have self-interested preferences for the success of their own projects over those conducted by others, they provide insufficient budget support relative to aid, which results in aid proliferation. Moreover, aid proliferation is shown to be worsened by the presence of more donors.

Download or read book Organizing U S Foreign Aid written by Carol Lancaster and published by Rowman & Littlefield. This book was released on 2005-07-08 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Overwhelmed by a proliferation of foreign aid programs, the U.S. government is attempting to reorganize itself in order to manage them more effectively. This raises several critical issues that will shape U.S. foreign aid policy for the 21st century: Should existing foreign aid agencies be combined into a cabinet-level agency, ensuring a voice for development concerns during policy discussions, or should they be placed in the State Department to strengthen their foreign policy focus? How should aid agencies manage the planning, implementation, and evaluation of their aid? Is "managing for results" as currently practiced appropriate for what is often a highly experimental task of bringing about beneficial changes in foreign countries? How should the U.S. government educate its citizens on the issues of foreign aid and development as expenditures rise and as the ambitious goals driving aid—including nation building—expand? In Organ izing Foreign Aid, Carol Lancaster and Ann Van Dusen call for a fundamental reorganization of U.S. aid programs. They recommend a major increase in efforts at development education. The authors also provide insights into how other donor governments have dealt with these challenges. With the future of U.S. foreign aid policy at stake, this book will be essential reading for anyone interested in development, foreign aid, and the organization of government programs in these areas.

Download or read book Foreign Aid for Development written by George Mavrotas and published by OUP Oxford. This book was released on 2010-02-25 with total page 394 pages. Available in PDF, EPUB and Kindle. Book excerpt: Foreign aid is one of the few topics in the development discourse with such an uninterrupted, yet volatile history in terms of interest and attention from academics, policymakers, and practitioners alike. Does aid work in promoting growth and reducing poverty in the developing world? Will a new 'big push' approach accelerate progress towards the Millennium Development Goals or will another opportunity be missed? Can the lessons of almost half a century of aid giving be learnt? These are truly important questions in view of the emerging new landscape in foreign aid and recent developments related to the global financial crisis, which are expected to have far reaching implications for both donors and recipients engaged in this area. Against this shifting aid landscape, there is a pressing need to evaluate progress to date and shed new light on emerging issues and agendas. This volume brings together leading aid experts to review the progress achieved so far, identify the challenges ahead, and discuss the emerging policy agenda in foreign aid. A central conclusion of this important and timely volume is that, since development aid remains crucial for many developing countries, a huge effort is needed from both donors and aid recipients to overcome the inefficiencies and make aid work better for poor people. After all, as global citizens, we have a moral obligation to do the best we can to lift people out of poverty in the developing world. The findings of this book will be of considerable interest to professionals and policymakers engaged in policy reforms in foreign aid, and provide an essential one-stop reference for students of development, international finance, and economics.