Patrick GUILLAUMONT () (Centre d'Etudes et de Recherches sur le Développement International)
Abstract
This paper analyzes aid allocation from a normative point of view. It attempts to design aid allocation criteria adapted to development goals and combining the principles of effectiveness and equity in a transparent and integrated framework. The common view about aid selectivity, which essentially refers to the quality of governance and policy indicators, is challenged for several reasons, in particular the weakness of the relationship between these indicators and aid effectiveness and the risk of countries facing exogeneous difficulties being left behind. Consistent with the lessons of the literature on aid effectiveness, new criteria for aid allocation are proposed, in particular that of structural vulnerability which has been shown to increase the marginal effectiveness of aid, because aid dampens its negative effects. Moreover, equity principles in aid allocation involve promoting equal opportunities (for economic growth and to reduce poverty), which means giving more aid to countries facing more severe structural handicaps. Thus a rational basis is given for allocating more aid to the LDCs (least developed countries), designated as low income countries suffering the most from structural handicaps. Using the Economic Vulnerability Index (EVI) set up for the identification of LDCs also leads to giving special attention to small and vulnerable countries which are not LDCs, and to fragile states as well.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Publisher Info
Paper provided by CERDI in its series Working Papers with number
200810.
Length: 35 Date of creation: 2008 Date of revision: Handle: RePEc:cdi:wpaper:988
Contact details of provider: Postal: 65 Bd. F. Mitterrand, 63000 Clermont-Ferrand Phone: (33-4) 73 17 74 00 Fax: (33-4) 73 17 74 28 Web page: http://cerdi.org/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Vincent Mazenod).