Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures
AbstractThis paper develops a modest proposal for introducing final outcome indicators in the IDA aid allocation formula. It starts with a review of the current formula and the rationale for it. It is argued that this formula, and in particular the Country Policy and Institutional Assessment (CPIA) part of it, implicitly relies too heavily on a uniform model of what works in development policy. Even if this model were valid "on average", the variations around the average make it an unreliable sole guide to the country-specific productivity of aid in achieving the final objectives of development. Rather, it is argued that changes in the actual outcomes on these final objectives could also be used as part of the allocation formula. A number of conceptual and operational objections to this position are considered and debated. The paper concludes that there is much to be gained by taking small steps in the direction of introducing outcome variables in the IDA formula, and assessing the experience of doing so in a few years' time.
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 InfoPaper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 127071.
Date of creation: 2005
Date of revision:
Other versions of this item:
- Kanbur, Ravi, 2005. "Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures," CEPR Discussion Papers 4971, C.E.P.R. Discussion Papers.
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- C-J. Dalgaard & H. Hansen, 2001. "On Aid, Growth and Good Policies," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 17-41.
- Burnside, Craig & Dollar, David, 1997.
"Aid, policies, and growth,"
Policy Research Working Paper Series
1777, The World Bank.
- Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
- William Easterly & Ross Levine & David Roodman, 2003. "New Data, New doubts: A Comment on Burnside and Dollar's "Aid, Policies, and Growth" (2000)," NBER Working Papers 9846, National Bureau of Economic Research, Inc.
- Collier, Paul & Guillaumont, Patrick & Guillaumont, Sylviane & Gunning, Jan Willem, 1997. "Redesigning conditionality," World Development, Elsevier, vol. 25(9), pages 1399-1407, September.
- Kanbur, Ravi, 2004.
"Growth, Inequality And Poverty: Some Hard Questions,"
127133, Cornell University, Department of Applied Economics and Management.
- Ravi Kanbur, 2004. "Growth, Inequality And Poverty: Some Hard Questions," Working Papers 157, Institute for Social and Economic Change, Bangalore.
- Adam, Christopher & Chambas, Gerard & Guillaumont, Patrick & Guillaumont Jeanneney, Sylviane & Gunning, Jan Willem, 2004.
"Performance-Based Conditionality: A European Perspective,"
Elsevier, vol. 32(6), pages 1059-1070, June.
- Sylviane GUILLAUMONT JEANNENEY & Patrick GUILLAUMONT & Gérard CHAMBAS & Christopher ADAM & Jan Willem GUNNING, 2003. "Performance-Based Conditionality: A European Perspective," Working Papers 200306, CERDI.
- Finn Tarp, 2006.
"Aid and Development,"
06-12, University of Copenhagen. Department of Economics.
- Patrick GUILLAUMONT & Lisa CHAUVET, 1999.
"Aid and Performance: A Reassessment,"
- Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398.
- Robert K. Fleck & Christopher Kilby, 2006.
"World Bank Independence: A Model and Statistical Analysis of US Influence,"
Review of Development Economics,
Wiley Blackwell, vol. 10(2), pages 224-240, 05.
- Fleck, Robert K. & Kilby, Christopher & Fleck, Robert K., 2001. "World Bank Independence: A Model and Statistical Analysis of U.S. Influence," Vassar College Department of Economics Working Paper Series 53, Vassar College Department of Economics.
- Gaoussou Diarra & Patrick Plane, 2011.
"Assessing the World Bank's influence on the good governance paradigm,"
- Gaoussou DIARRA & Patrick PLANE, 2010. "Assessing the World Bank’s influence on the good governance paradigm," Working Papers 201038, CERDI.
- Gaoussou Diarra & Patrick Plane, 2011. "Assessing the World Bank's influence on the good governance paradigm," Working Papers halshs-00555814, HAL.
- Gaoussou DIARRA & Patrick PLANE, 2011. "Assessing the World Bank’s influence on the good governance paradigm," Working Papers 201127, CERDI.
- Benno Ferrarini, 2009. "Policy, vulnerability and the new debt sustainability framework," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(7), pages 895-914.
- Rhona Barr & Samuel Fankhauser & Kirk Hamilton, 2010. "Adaptation investments: a resource allocation framework," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 15(8), pages 843-858, December.
- Christopher Kilby, 2011.
"The Political Economy of Project Preparation: An Empirical Analysis of World Bank Projects,"
Villanova School of Business Department of Economics and Statistics Working Paper Series
14, Villanova School of Business Department of Economics and Statistics.
- Kilby, Christopher, 2013. "The political economy of project preparation: An empirical analysis of World Bank projects," Journal of Development Economics, Elsevier, vol. 105(C), pages 211-225.
- Ferrarini, Benno, 2008. "Proposal for a Contingency Debt Sustainability Framework," World Development, Elsevier, vol. 36(12), pages 2547-2565, December.
- Alan Gelb, 2010. "How Can Donors Create Incentives for Results and Flexibility for Fragile States? A Proposal for IDA," Working Papers id:3233, eSocialSciences.
- Independent Evaluation Group, 2006. "Engaging with Fragile States : An IEG Review of World Bank Support to Low-Income Countries under Stress," World Bank Publications, The World Bank, number 7155, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.