This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

What Have IMF Programs With Low-Income Countries Assumed About Aid Flows?

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
David Goldsbrough ()
Ben Elberger
Abstract

This paper examines the nature of aid projections in IMF programs with low-income countries. On average, IMF projections of net aid increased sharply in the first year of programs but tapered off in subsequent years. Projections were also significantly more optimistic in countries with low initial levels of aid but differed little across regions. Most notably, projections of net aid to countries in Sub-Saharan Africa following the Gleneagles Summit are significantly more pessimistic than the path implied by commitments to double aid to Africa by 2010. This pattern is strong throughout the group with only two Sub-Saharan African countries showing increases in net aid consistent with the Gleneagles commitments. We argue that much greater clarity is needed about the role of the IMF in the aid architecture. In addition to projecting likely aid flows based on detailed discussions with donors, the IMF should utilize sector-level inputs to assess the macroeconomic effects of a significant scaling-up of aid in programs with low-income countries. Such a scenario would help the international community and the country itself judge whether there are any macroeconomic constraints to absorbing more aid. The obvious benchmark to use for aid levels in such a scenario would be what donors have committed to globally--i.e. a doubling of aid in the case of African countries. Finally, we conclude that the IMF should be more transparent about what its collective program projections imply for the expected path of global aid flows.

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.

File URL: http://www.cgdev.org/content/publications/detail/13447
File Format:
File Function:
Download Restriction: no

Publisher Info
Paper provided by Center for Global Development in its series Working Papers with number 116.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 18 pages
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:cgd:wpaper:116

Contact details of provider:
Web page: http://www.cgdev.org

For technical questions regarding this item, or to correct its listing, contact: (David Roodman).

Related research
Keywords: International Monetary Fund; foreign aid; ODA; projections; Gleneagles Summit; macroeconomic frameworks; macroeconomic programs; Africa;

Find related papers by JEL classification:
F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
F35 - International Economics - - International Finance - - - Foreign Aid
F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation

This paper has been announced in the following NEP Reports:

Statistics
Access and download statistics

Did you know? You can include your works in the database easily by uploading them on the Munich Personal RePEc Archive (MPRA) if you do not have access to an institutional RePEc archive.

This page was last updated on 2009-10-19.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.