After the Big Push? Fiscal and Institutional Implications of Large Aid Increases
AbstractThere 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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Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 71.
Length: 13 pages
Date of creation: Oct 2005
Date of revision:
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Web page: http://www.cgdev.org
overseas development assistance; big push;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- F35 - International Economics - - International Finance - - - Foreign Aid
This paper has been announced in the following NEP Reports:
- NEP-AFR-2006-08-19 (Africa)
- NEP-ALL-2006-08-19 (All new papers)
- NEP-DEV-2006-08-19 (Development)
- NEP-PBE-2006-08-19 (Public Economics)
- NEP-SEA-2006-08-19 (South East Asia)
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- Bernard Walters, 2007. "The Fiscal Implications of Scaling up ODA to Deal with the HIV/AIDS Pandemic," Conference Paper 3, International Policy Centre for Inclusive Growth.
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