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Reducing Poverty By Aid Reallocation: Uncertainties And Alternative Assumptions

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  • Patrick GUILLAUMONT

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

Abstract

Two recent World Bank documents argue that the effects of aid on growth depend on the recipient country policy (Burnside and Dollar) and that it is possible to allocate aid in order to maximize poverty reduction (Collier and Dollar). This study presents a critical examination of the assumption on which the two documents rely and suggest new assumption and orientations for research. It successively focuses on the aid-growth relationship, supposing that aid effectiveness depends on vulnerability as well as on policy, and on the poverty minimisation exercise, proposing to test directly the impact of aid on poverty reduction.

Suggested Citation

  • Patrick GUILLAUMONT, 1999. "Reducing Poverty By Aid Reallocation: Uncertainties And Alternative Assumptions," Working Papers 199928, CERDI.
    • Handle: RePEc:cdi:wpaper:127
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    File URL: http://publi.cerdi.org/ed/1999/1999.28.pdf
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    References listed on IDEAS

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    1. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," The World Bank Economic Review, World Bank, vol. 11(2), pages 357-382, May.
    2. P. Guillaumont & L. Chauvet, 2001. "Aid and Performance: A Reassessment," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 66-92.
    3. Burnside, Craig & Dollar, David, 1998. "Aid, the incentive regime, and poverty reduction," Policy Research Working Paper Series 1937, The World Bank.
    4. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    5. Collier, Paul & Guillaumont, Patrick & Guillaumont, Sylviane & Gunning, Jan Willem, 1997. "Redesigning conditionality," World Development, Elsevier, vol. 25(9), pages 1399-1407, September.
    6. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
    7. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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    Cited by:

    1. Patrick GUILLAUMONT, 2000. "On the Economic Vulnerability of Low Income Countries," Working Papers 200016, CERDI.
    2. Patrick GUILLAUMONT, 1999. "On The Economic Vulnerability Of Low Income Countries révisé, cf 2000.16," Working Papers 199916, CERDI.

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