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Aid performance and its determinants. A comparison of Italy with the OECD norm

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Author Info

  • Simone Bertoli

    ()
    (Università degli Studi di Firenze, Dipartimento di Scienze Economiche, Firenze (ItaIy))

  • Giovanni Andrea Cornia

    ()
    (Università degli Studi di Firenze, Dipartimento di Scienze Economiche, Firenze (ItaIy))

  • Francesco Manaresi

    ()
    (Università degli Studi di Firenze, Dipartimento di Scienze Economiche, Firenze (ItaIy))

Abstract

This paper argue that Italy's aid performance is problematic in more than one respect. To start with, the country's aid volume is low in relation to whatever normative or positive benchmark is utilized, and a minimum of € 1.4-2.8 billion is required to reach the aid level warranted by its specifie macroeconomic, structural and institutional conditions. lts performance is weak not only in relation to the average DAC behaviour, but also to that of other less prosperous Southern European countries. In addition, the level of arrears (signaling a weak aid administration), though falling in relation to the past, remains high. This paper also shows that the ltalian aid gap - relative to an unimpressive DAC average behaviour -persists even when accounting for the country's unfavourable conditions (and, in some cases, one wonders whether these are justifiable), regardless of the politieal orientation of the various governments that succeeded themselves at the helm of the country. The achievement of international targets is becoming more and more distant over time - and reaching these objectives, to whieh now the main European partners of Italy are firmly committed, will require a large budgetary effort. lt is time the country respects the international obligations it has underwritten and starts playing also in the field of foreign aid a role consistent with its economie weight, history, geography and collective ethic.

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Bibliographic Info

Article provided by Banca Nazionale del Lavoro in its journal Banca Nazionale del Lavoro Quarterly Review.

Volume (Year): 60 (2007)
Issue (Month): 242 ()
Pages: 271-321

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Handle: RePEc:psl:bnlqrr:2007:33

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Keywords: aid performance; OECD; Italy;

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References

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  1. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
  2. Mosley, Paul, 1985. "The Political Economy of Foreign Aid: A Model of the Market for a Public Good," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 373-93, January.
  3. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
  4. Faini, Riccardo, 2006. "Foreign Aid and Fiscal Policy," CEPR Discussion Papers 5721, C.E.P.R. Discussion Papers.
  5. Beck, T.H.L. & Clarke, G. & Groff, A. & Keefer , P. & Walsh, P., 2001. "New tools in comparative political economy: The database of political institutions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3125517, Tilburg University.
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  7. Cohen, Daniel, 1996. "The sustainability of African debt," Policy Research Working Paper Series 1621, The World Bank.
  8. Schweinberger, Albert G. & Lahiri, Sajal, 2006. "On the provision of official and private foreign aid," Journal of Development Economics, Elsevier, vol. 80(1), pages 179-197, June.
  9. Elbadawi, Ibrahim A, 1999. "External Aid: Help or Hindrance to Export Orientation in Africa?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(4), pages 578-616, December.
  10. Silvia Marchesi & Alessandro Missale, 2004. "What does motivate lending and aid to the HIPCs?," Development Working Papers 189, Centro Studi Luca d\'Agliano, University of Milano.
  11. Thierry Tressel & Alessandro Prati, 2006. "Aid Volatility and Dutch Disease," IMF Working Papers 06/145, International Monetary Fund.
  12. Round, Jeffery I. & Odedokun, Matthew, 2004. "Aid effort and its determinants," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 293-309.
  13. Alberto Chong & Mark Gradstein, 2006. "Who's Afraid of Foreign Aid? The Donors' Perspective," Research Department Publications 4452, Inter-American Development Bank, Research Department.
  14. KIMURA Hidemi & TODO Yasuyuki, 2007. "Is Foreign Aid a Vanguard of FDI? A Gravity-Equation Approach," Discussion papers 07007, Research Institute of Economy, Trade and Industry (RIETI).
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  16. Christopher S Adam & Stephen A O'Connell, 2004. "Aid versus Trade Revisited: Donor and Recipient Policies in the Presence of Learning-by-Doing," Economic Journal, Royal Economic Society, vol. 114(492), pages 150-173, 01.
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Cited by:
  1. Era Dabla-Norris & Camelia Minoiu & Luis-Felipe Zanna, 2010. "Business Cycle Fluctuations, Large Shocks, and Development Aid," IMF Working Papers 10/240, International Monetary Fund.
  2. Axel Dreher & Peter Nunnenkamp & Maya Schmaljohann, 2013. "The Allocation of German Aid: Self-interest and Government Ideology," Kiel Working Papers 1817, Kiel Institute for the World Economy.

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