Aid and the Millennium Development Goal Poverty Target: How Much is Required and How Should it be Allocated?
AbstractThis paper uses econometric estimates of the link between aid and economic growth to ask how much additional aid is required to meet the Millennium Development Goal of halving global poverty by 2015, and how this aid should be allocated across countries. It first shows that a large increase in existing aid levels can be justified to halve $1-a-day poverty by 2015, on a country-by-country basis, under the econometric estimates obtained by Hansen & Tarp (2001, Journal of Development Economics, 64, pp. 547-570) and Lensink & White (2001, Journal of Development Studies, 37, pp. 42-65), but not those of Collier & Dollar (2002, European Economic Review, 46, pp. 1475-1500). The paper then shows that, even where an increase in existing aid levels can be justified, a much larger number of people—up to around 70 million—could be lifted out of poverty by 2015 if aid was instead allocated on a poverty-efficient basis. This cautions against the use of a country-by-country target approach when allocating aid across recipient countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Oxford Development Studies.
Volume (Year): 35 (2007)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CODS20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Adrian Wood (QEH), .
"Looking ahead optimally in allocating aid,"
QEH Working Papers
qehwps137, Queen Elizabeth House, University of Oxford.
- Sumner, Andy, 2012. "Where Do The Poor Live?," World Development, Elsevier, vol. 40(5), pages 865-877.
- Eggen, Andrea & Bezemer, Dirk, 2008. "The role of poverty reduction strategies in achieving the millennium development goals," Research Report 08001, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.