There are indications that overseas development assistance budgets will continue to increase in coming years, spurred in part by growing calls for a ‘Big Push’ in aid to the poorest countries. In this paper, we estimate the effect of six proposals on aid intensity ratios for 52 low-income countries. We find that, in the average scenario, at least 35 of these countries would see aid inflows equivalent to more than half of total public expenditure and 17 would cross the 75 percent threshold. We also consider possible negative influences of such increases on the incentives for institutional development, on the accountability of state institutions to their own populations, and on long-term sustainability.
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Paper provided by Center for Global Development in its series Working Papers with number
71.
Find related papers by JEL classification: O1 - Economic Development, Technological Change, and Growth - - Economic Development F35 - International Economics - - International Finance - - - Foreign Aid
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