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Who Deserves Aid? Equality of Opportunity, International Aid, and Poverty Reduction

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  • Cogneau, Denis
  • Naudet, Jean-David

Abstract

We build and implement a normative procedure to allocate international aid based on equality of opportunity concerning the risk of poverty. This is an alternative to Collier and Dollar’s proposal (2001) which stresses the impact of aid on worldwide poverty reduction. The big problem with their approach, as regards distributive justice, is that it leaves very great inequality in poverty risk between inhabitants of countries with widely varying structural disadvantages. We draw on post-welfarist theories of social justice, especially those of John Roemer. However our proposal is very different to that of Llavador and Roemer (2001), which has serious methodological errors and reaches contradictory conclusions. Our proposed allocations, like those of Collier and Dollar, differ from current aid allocation by giving more to the poorest countries. Apart from this agreement, our equality of opportunity principle takes account of structural disadvantages to growth rather than quality of past policies. Our kind of allocation shares out poverty risks much more fairly among the world’s population, while reducing global poverty almost as effectively as Collier and Dollar\'s.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 35 (2007)
Issue (Month): 1 (January)
Pages: 104-120

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Handle: RePEc:eee:wdevel:v:35:y:2007:i:1:p:104-120

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Web page: http://www.elsevier.com/locate/worlddev

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  1. repec:rus:hseeco:72137 is not listed on IDEAS
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  18. Thibault Gadjos & Eric Maurin, 2002. "Unequal Uncertainties and Uncertain Inequalities : An Axiomatic Approach," Working Papers 2002-32, Centre de Recherche en Economie et Statistique.
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Citations

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Cited by:
  1. Lidia Ceriani & Paolo Verme, 2013. "The Income Lever and the Allocation of Aid," Working Papers 286, ECINEQ, Society for the Study of Economic Inequality.
  2. Cogneau, Denis & Lambert, Sylvie, 2006. "L'aide au développement et les autres flux nord-sud : complémentarité ou substitution ?," CEPREMAP Working Papers (Docweb) 0602, CEPREMAP.
  3. Cogneau, Denis, 2010. "The political dimension of inequality during economic development," CEPREMAP Working Papers (Docweb) 1013, CEPREMAP.
  4. Feeny, Simon & de Silva, Ashton, 2012. "Measuring absorptive capacity constraints to foreign aid," Economic Modelling, Elsevier, vol. 29(3), pages 725-733.
  5. Adrian Wood (QEH), . "Looking ahead optimally in allocating aid," QEH Working Papers qehwps137, Queen Elizabeth House, University of Oxford.
  6. Mark McGillivray, 2010. "Aid Allocation and Fragile States," Working Papers id:3062, eSocialSciences.
  7. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, Elsevier.
  8. Fowler, A.F. & Biekart, K., 2011. "Civic driven change: a narrative to bring politics back into civil society discourse," ISS Working Papers - General Series 529, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  9. Sergio Tezanos Vázquez, 2009. "Geopolítica de la ayuda ¿Cómo optimizar el impacto de la ayuda sobre el crecimiento?," Documentos de trabajo sobre cooperación y desarrollo 200903, Cátedra de Cooperación Internacional y con Iberoamérica (COIBA), Universidad de Cantabria.
  10. McGillivray, Mark, 2006. "Aid Allocation and Fragile States," Working Paper Series DP2006/01, World Institute for Development Economic Research (UNU-WIDER).

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