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Less aid proliferation and more donor coordination? The wide gap between words and deeds

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Author Info

  • I�aki Aldasoro

    (Bruegel, Brussels, Belgium)

  • Peter Nunnenkamp

    (Kiel Institute for the World Economy, Kiel, Germany)

  • Rainer Thiele

    (Kiel Institute for the World Economy, Kiel, Germany)

Abstract

We present a two-step approach of assessing whether major donors of foreign aid have met recent demands for less proliferated and better coordinated aid efforts. First, we calculate Theil indices revealing the concentration of each donor's aid on recipient countries and specific aid sectors. Second, we map overlaps of aid from different donors and over time to analyze the degree of coordination. Our results point to a wide and persistent gap between the rhetoric of political declarations and the donors' actual aid allocation during the period 1995-2006. Few donors have specialized on a limited set of recipients and aid sectors, and coordination has remained elusive. Copyright © 2009 John Wiley & Sons, Ltd.

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Bibliographic Info

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

Volume (Year): 22 (2010)
Issue (Month): 7 ()
Pages: 920-940

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Handle: RePEc:wly:jintdv:v:22:y:2010:i:7:p:920-940

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Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Berthelemy, Jean-Claude & Tichit, Ariane, 2002. "Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Yutaka Arimoto & Hisaki Kono, 2009. "Foreign Aid and Recurrent Cost: Donor Competition, Aid Proliferation, and Budget Support," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 276-287, 05.
  3. Knack, Stephen & Rahman, Aminur, 2007. "Donor fragmentation and bureaucratic quality in aid recipients," Journal of Development Economics, Elsevier, vol. 83(1), pages 176-197, May.
  4. David Roodman, 2006. "Competitive Proliferation of Aid Projects: A Model," Working Papers 89, Center for Global Development.
  5. Grubel, Herbert G & Lloyd, P J, 1971. "The Empirical Measurement of Intra- Industry Trade," The Economic Record, The Economic Society of Australia, vol. 47(120), pages 494-517, December.
  6. Jayant Menon & Peter B. Dixon,, . "Regional Trading Agreements and Intra-Industry Trade," Discussion Papers 95/14, University of Nottingham, CREDIT.
  7. Arnab Acharya & Ana Teresa Fuzzo de Lima & Mick Moore, 2006. "Proliferation and fragmentation: Transactions costs and the value of aid," Journal of Development Studies, Taylor & Francis Journals, vol. 42(1), pages 1-21.
  8. O'Connell, Stephen A. & Soludo, Charles C., 2001. "Aid Intensity in Africa," World Development, Elsevier, vol. 29(9), pages 1527-1552, September.
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Cited by:
  1. Andreas Fuchs & Peter Nunnenkamp & Hannes Öhler, 2013. "Why Donors of Foreign Aid Do Not Coordinate: The Role of Competition for Export Markets and Political Support," Kiel Working Papers 1825, Kiel Institute for the World Economy.
  2. Öhler, Hannes, 2013. "Do Aid Donors Coordinate Within Recipient Countries?," Working Papers 539, University of Heidelberg, Department of Economics.
  3. Fabian Barthel & Eric Neumayer & Peter Nunnenkamp & Pablo Selaya, 2013. "Competition for Export Markets and the Allocation of Foreign Aid: The Role of Spatial Dependence among Donor Countries," Kiel Working Papers 1875, Kiel Institute for the World Economy.
  4. Bettina Kretschmer & Michael Hübler & Peter Nunnenkamp, 2010. "Does Foreign Aid Reduce Energy and Carbon Intensities in Developing Countries," Kiel Working Papers 1598, Kiel Institute for the World Economy.
  5. Ronald B. Davies & Stephan Klasen, 2013. "Of Donor Coordination, Free-Riding, Darlings, and Orphans: The dependence of bilateral aid on other bilateral giving," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 137, Courant Research Centre PEG.
  6. Leiderer, Stefan, 2013. "Donor coordination for effective government policies? Implementation of the new aid effectiveness agenda in health and education in Zambia," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Acharya, Arnab & Alvarez, Melisa Mart.nez, 2012. "Aid Effectiveness in the Health Sector," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Aurore Gary & Mathilde Maurel, 2013. "The effect of donors' policy coherence on growth," Documents de travail du Centre d'Economie de la Sorbonne 13046, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  9. Peter Nunnenkamp & Hannes Öhler & Rainer Thiele, 2011. "Donor Coordination and Specialization: Did the Paris Declaration Make a Difference?," Kiel Working Papers 1748, Kiel Institute for the World Economy.
  10. Aurore Gary & Mathilde Maurel, 2013. "The effect of donors' policy coherence on growth," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00825816, HAL.

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