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What is effective aid? How would donors allocate it?

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  • Charles Kenny

Abstract

There are significant weaknesses in some of the traditional justifications for assuming that aid will foster development. This paper looks at what the cross-national aid effectiveness literature suggests about effective aid, first in terms of promoting income growth and then for promoting other goals. This review forms the basis for a discussion of recommendations to improve aid effectiveness and a discussion of effective aid allocation. Given the multiple potential objectives for aid, there is no one right answer. However, it appears that there are a number of reforms to aid practices and distribution that might help to deliver a more significant return to aid resources. Il y a d'importantes faiblesses dans la pensee traditionnelle qui pretend que l'aide stimulera le developpement. Cet article etudie ce que dit la litterature sur l'efficacite de l'aide internationale a ce sujet, d'abord vis-a-vis de la croissance du revenu, puis au regard de ses autres objectifs. Ce bilan constitue une base pour des recommandations visant a ameliorer l'efficacite de l'aide et pour une discussion sur l'efficacite de l'attribution de l'aide. Etant donne les determinants multiples de l'allocation de l'aide, il n'y a pas une seule bonne reponse. Cependant, un certain nombre de reformes concernant les pratiques et la distribution de l'aide pourrait contribuer a ameliorer le rendement de l'aide.

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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal The European Journal of Development Research.

Volume (Year): 20 (2008)
Issue (Month): 2 ()
Pages: 330-346

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Handle: RePEc:taf:eurjdr:v:20:y:2008:i:2:p:330-346

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Related research

Keywords: aid effectiveness; economic growth; cross-national analysis;

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References

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  1. Michael A. Clemens & Charles J. Kenny & Todd J. Moss, 2004. "The Trouble with the MDGs: Confronting Expectations of Aid and Development Success," Working Papers 40, Center for Global Development.
  2. Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc.
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  9. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
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Citations

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Cited by:
  1. Bah, El-hadj M. & Ward, Jeremy, 2011. "Effectiveness of foreign aid in Small Island Developing States," MPRA Paper 32062, University Library of Munich, Germany.
  2. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
  3. Bernard Walters, 2007. "The Fiscal Implications of Scaling up ODA to Deal with the HIV/AIDS Pandemic," Conference Paper 3, International Policy Centre for Inclusive Growth.
  4. Sumner, Andy, 2012. "Where Do The Poor Live?," World Development, Elsevier, vol. 40(5), pages 865-877.

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