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Development effectiveness: what have we learnt?

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Author Info
Paul Collier
David Dollar

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Abstract

We suggest that the 'poverty-efficiency' aid allocation is merely a benchmark guide if a donor lacks other information about the country and also the power to change or prevail over government preferences. We argue that in most circumstances donors have only limited scope for the latter and that, while high aid dependence may reduce the fungibility problem and the use of NGOs can by-pass it altogether, such circumstances are not very common. Hence, the main reasons for departing from the benchmark are when the donor has additional information about likely poverty impact, or if poverty reduction is not the objective. Copyright 2004 Royal Economic Society.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 114 (2004)
Issue (Month): 496 (06)
Pages: F244-F271
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Handle: RePEc:ecj:econjl:v:114:y:2004:i:496:p:f244-f271

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  1. Addison, Tony & Mavrotas, George & McGillivray, Mark, 2005. "Aid, Debt Relief and New Sources of Finance for Meeting the Millennium Development Goals," Working Papers RP2005/09, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Tobias Knedlik & Franz Kronthaler, 2006. "Forced to Freedom? Empirical relations between aid and economic freedom," IWH Discussion Papers 8-06, Halle Institute for Economic Research. [Downloadable!]
    Other versions:
  3. Peter Jensen & Martin Paldam, 2006. "Can the two new aid-growth models be replicated?," Public Choice, Springer, vol. 127(1), pages 147-175, April. [Downloadable!] (restricted)
  4. Machiko Nissanke & Benno Ferrarini, 2007. "Assessing the Aid Allocation and Debt Sustainability Framework: Working Towards Incentive Compatible Aid Contracts," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  5. Mavrotas, George & Villanger, Espen, 2006. "Multilateral Aid Agencies and Strategic Donor Behaviour," Working Papers DP2006/02, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Andros Kourtellos & Chih Ming Tan & Xiaobo Zhang, 2006. "Is the Relationship Between Aid and Economic Growth Nonlinear?," Discussion Papers Series, Department of Economics, Tufts University 0614, Department of Economics, Tufts University. [Downloadable!]
    Other versions:
  7. George Mavrotas, 2005. "Aid heterogeneity: looking at aid effectiveness from a different angle," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 1019-1036. [Downloadable!]
  8. McGillivray, Mark, 2006. "Aid Allocation and Fragile States," Working Papers DP2006/01, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  9. Addison, Tony & Mavrotas, George & McGillivray, Mark, 2005. "Development Assistance and Development Finance: Evidence and Global Policy Agendas," Working Papers RP2005/23, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  10. Tony Addison & George Mavrotas & Mark McGillivray, 2005. "Development assistance and development finance: evidence and global policy agendas," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(6), pages 819-836. [Downloadable!]
  11. Tony Addison & George Mavrotas & Mark McGillivray, 2005. "Aid to Africa: an unfinished agenda," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 989-1001. [Downloadable!]
  12. feng dai, 2005. "The Golden Growth Law in Economic Process," Development and Comp Systems 0511014, EconWPA. [Downloadable!]
  13. Feng, Dai & Yuan-Zheng, Zhong, 2006. "The Stochastic Advance-Retreat Course: An Approach to Analyse Social-Economic Evolution," MPRA Paper 117, University Library of Munich, Germany. [Downloadable!]
  14. Simeon Djankov & Jose Montalvo & Marta Reynal-Querol, 2008. "The curse of aid," Journal of Economic Growth, Springer, vol. 13(3), pages 169-194, September. [Downloadable!] (restricted)
    Other versions:
  15. Mark McGillivray, 2005. "Réformer la formule : commentaires.Efficacité de l'aide et régimes de politiques économiques dans les pays receveurs," Revue d’économie du développement, De Boeck Université, vol. 19(2), pages 119-127. [Downloadable!]
  16. Lin, Tun & Mavrotas, George, 2004. "A Contract Perspective on the International Finance Facility," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  17. Baliamoune-Lutz, Mina N. & Mavrotas, George, 2008. "Aid Effectiveness: Looking at the Aid-Social Capital-Growth Nexus," Working Papers RP2008/75, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  18. Antipin, Jan-Erik & Mavrotas, George, 2006. "On the Empirics of Aid and Growth: A Fresh Look," Working Papers RP2006/05, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  19. Erik Lundsgaarde & Christian Breunig & Aseem Prakash, 2007. "Trade versus aid: donor generosity in an era of globalization," Policy Sciences, Springer, vol. 40(2), pages 157-179, June. [Downloadable!] (restricted)
  20. David Roodman, 2004. "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics," Development and Comp Systems 0412003, EconWPA. [Downloadable!]
    Other versions:
  21. Sayanak, Tejashree & Lahiri, Sajal, 2008. "Foreign Aid as Prize: Incentives for a Pro-Poor Policy," Working Papers RP2008/63, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  22. Dierk Herzer & Oliver Morrissey, . "The Long-Run Effect of Aid on Domestic Output," Discussion Papers 09/01, University of Nottingham, CREDIT. [Downloadable!]
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