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Development assistance and development finance: evidence and global policy agendas

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  • Tony Addison

    (World Institute for Development Economics Research, United Nations University, Helsinki, Finland)

  • George Mavrotas

    (World Institute for Development Economics Research, United Nations University, Helsinki, Finland)

  • Mark McGillivray

    (World Institute for Development Economics Research, United Nations University, Helsinki, Finland)

Abstract

Understanding the development effects of official aid is crucial to building a better bridge between research and policy. This paper reviews the current evidence regarding the impact of aid on growth and poverty reduction, and develops a new narrative. In the light of this narrative, the paper then examines aid trends, focusing on the regions of sub-Saharan Africa and the Pacific. The paper then turns to recent discussion of new and innovative sources of development finance and considers how research has influenced the policy debate through a recent World Institute for Development Economics Research (UNU-WIDER) study for the United Nations (UN) General Assembly. The paper concludes that aid broadly works, that poverty would be higher in the absence of aid, and that the shortfall in aid during the 1990s has, by implication, made it more difficult to meet the Millennium Development Goals (MDGs). Hence, a considerable catch-up in aid and other development finance flows is now necessary if poverty is to be substantially reduced by 2015. Copyright © 2005 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 17 (2005)
Issue (Month): 6 ()
Pages: 819-836

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Handle: RePEc:wly:jintdv:v:17:y:2005:i:6:p:819-836

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Citations

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Cited by:
  1. 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.
  2. Asongu Simplice, 2012. "The political economy of development assistance: peril to government quality dynamics in Africa," Working Papers 12/008, African Governance and Development Institute..
  3. Simplice A, Asongu, 2012. "Reversed Economics and Inhumanity of Development Assistance in Africa," MPRA Paper 36542, University Library of Munich, Germany.
  4. Asongu Simplice, 2012. "Institutional benchmarking of foreign aid effectiveness in Africa," Working Papers 12/028, African Governance and Development Institute..
  5. Fielding, David & McGillivray, Mark & Torres, Sebastian, 2006. "A Wider Approach to Aid Effectiveness: Correlated Impacts on Health, Wealth, Fertility and Education," Working Paper Series RP2006/23, World Institute for Development Economic Research (UNU-WIDER).
  6. Simplice A Asongu & Jellal Mohamed, 2013. "On the channels of foreign aid to corruption," Economics Bulletin, AccessEcon, vol. 33(3), pages 2191-2201.
  7. 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.
  8. Larru, Jose Maria, 2006. "La ayuda al desarrollo: ¿reduce la pobreza?
    [Foreign Aid: reduce poverty? (in Spanish)]
    ," MPRA Paper 2341, University Library of Munich, Germany.
  9. Asongu, Simplice A, 2013. "Consult your gods: the questionable economics of development assistance in Africa," MPRA Paper 48475, University Library of Munich, Germany.
  10. Addison, Tony & Baliamoune-Lutz, Mina N., 2013. "Aid and Dutch Disease: Evidence from Moroccan and Tunisian time-series data," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  11. Asongu Simplice, 2012. "Development thresholds of foreign aid effectiveness in Africa," Working Papers 12/010, African Governance and Development Institute..
  12. Baliamoune-Lutz, Mina, 2013. "The effectiveness of foreign aid to women.s equality organizations in the MENA: Does aid promote women.s political participation?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  13. Simon Feeny & Mark McGillivray, 2009. "Aid allocation to fragile states: Absorptive capacity constraints," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(5), pages 618-632.
  14. 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.
  15. Asongu, Simplice & Jellal, Mohamed, 2014. "International aid corruption and fiscal behavior policy," MPRA Paper 57192, University Library of Munich, Germany.
  16. Andrew M. Fischer, 2009. "Putting aid in its place: Insights from early structuralists on aid and balance of payments and lessons for contemporary aid debates," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(6), pages 856-867.

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