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Who deserves aid? Equality of opportunity,international aid and poverty reduction

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Author Info
Denis Cogneau () (DIAL, IRD, Paris)
Jean-David Naudet () (AFD, Département de la Recherche)

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Abstract

(english) We build and implement a normative procedure to allocate international aid based on equality of opportunity concerning the risk of poverty. This is an alternative to Collier and Dollar’s proposal (2001) which stresses the impact of aid on worldwide poverty reduction. The big problem with their approach, as regards distributive justice, is that it leaves very great inequality in poverty risk between inhabitants of countries with widely varying structural disadvantages. We draw on post-welfarist theories of social justice, especially those of John Roemer. However our proposal is very different to that of Llavador and Roemer (2001), which has serious methodological errors and reaches contradictory conclusions. Our proposed allocations, like those of Collier and Dollar, differ from current aid allocation by giving more to the poorest countries. Apart from this agreement, our equality of opportunity principle takes account of structural disadvantages to growth rather than quality of past policies. Our kind of allocation shares out poverty risks much more fairly among the world’s population, while reducing global poverty almost as effectively as Collier and Dollar's. _________________________________ (français) Nous élaborons et mettons en oeuvre une procédure normative d’allocation de l’aide internationale entre les pays, fondée sur le principe de l’égalité des chances vis-à-vis du risque de pauvreté. Cette procédure constitue une alternative à celle de Collier et Dollar (2001) qui maximise l’impact de l’aide sur la réduction de la pauvreté dans le monde. Du point de vue de la justice distributive, l’allocation de Collier et Dollar présente en effet l’inconvénient majeur de laisser subsister de très larges inégalités de risques de pauvreté entre des individus vivant dans des pays dont les handicaps structurels sont très différents. Notre travail s’inspire des théories « post-welfaristes » de la justice sociale, et en particulier de l’approche de John Roemer. Il fait toutefois une proposition très différente de celle de Llavador et Roemer (2001) qui comporte d’importants défauts de méthode et aboutit selon nous à des résultats contradictoires. Comme les allocations préconisées par Collier et Dollar, les solutions proposées ici diffèrent de la répartition actuelle de l’aide dans le sens où elles privilégient les pays les plus pauvres. Au-delà de ce résultat commun, le principe d’égalité des chances que nous mettons en avant conduit à prendre en compte les handicaps structurels de croissance plutôt que la qualité des politiques passées. Enfin, le type d’allocation que nous proposons égalise beaucoup mieux les risques de pauvreté entre les citoyens du monde, tout en réduisant presque aussi efficacement la pauvreté mondiale que l’allocation de Collier et Dollar.

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Publisher Info
Paper provided by DIAL (Développement, Institutions & Analyses de Long terme) in its series Working Papers with number DT/2004/10.

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Length: 27 pages
Date of creation: Nov 2004
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Handle: RePEc:dia:wpaper:dt200410

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Related research
Keywords: Foreign Aid; International aid; Equality of Opportunity; Poverty Reduction; Aide internationale; Egalité des chances; réduction de la pauvreté;

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Find related papers by JEL classification:
F35 - International Economics - - International Finance - - - Foreign Aid
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Thibault Gajdos & Eric Maurin, 2004. "Unequal Uncertainties and Uncertain Inequalities: An Axiomatic Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00085940_v1, HAL. [Downloadable!]
    Other versions:
  2. Llavador, Humberto G. & Roemer, John E., 2001. "An equal-opportunity approach to the allocation of international aid," Journal of Development Economics, Elsevier, vol. 64(1), pages 147-171, February. [Downloadable!] (restricted)
  3. C-J. Dalgaard & H. Hansen, 2001. "On Aid, Growth and Good Policies," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(6), pages 17-41, August. [Downloadable!] (restricted)
  4. Daniel Kaufmann & Aart Kraay, 2004. "Governance Indicators, Aid Allocation, and the Millennium Challenge Account," Development and Comp Systems 0405013, EconWPA. [Downloadable!]
  5. P. Guillaumont & L. Chauvet, 2001. "Aid and Performance: A Reassessment," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(6), pages 66-92, August. [Downloadable!] (restricted)
  6. David Roodman, 2004. "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics," Development and Comp Systems 0412003, EconWPA. [Downloadable!]
    Other versions:
  7. François Bourguignon, 2002. "The growth elasticity of poverty reduction : explaining heterogeneity across countries and time periods," DELTA Working Papers 2002-03, DELTA (Ecole normale supérieure). [Downloadable!]
  8. Craig Burnside & David Dollar, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September. [Downloadable!] (restricted)
    Other versions:
  9. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December. [Downloadable!] (restricted)
    Other versions:
  10. repec:rus:hseeco:72137 is not listed on IDEAS
  11. Berthelemy, Jean-Claude & Tichit, Ariane, 2002. "Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  12. Roemer, J.E., 1989. "Distributing Health: The Allocationof Resources by an International Agency," Research Paper 71, World Institute for Development Economics Research.
  13. Nancy Birdsall & Stijn Claessens & Ishac Diwan, 2002. "Policy Selectivity Foregone: Debt and Donor Behavior in Africa," Working Papers 17, Center for Global Development. [Downloadable!]
    Other versions:
  14. Collier, Paul & Dehn, Jan, 2001. "Aid, shocks, and growth," Policy Research Working Paper Series 2688, The World Bank. [Downloadable!]
  15. Knack, Stephen, 2000. "Aid dependence and the quality of governance : a cross-country empirical analysis," Policy Research Working Paper Series 2396, The World Bank. [Downloadable!]
  16. McGillivray, Mark, 2003. "Modelling Aid Allocation: Issues, Approaches and Results," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  17. Collier, Paul & Dollar, David, 2001. "Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals," World Development, Elsevier, vol. 29(11), pages 1787-1802, November. [Downloadable!] (restricted)
    Other versions:
  18. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September. [Downloadable!] (restricted)
    Other versions:
  19. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April. [Downloadable!] (restricted)
  20. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages F191-F216, 06. [Downloadable!] (restricted)
    Other versions:
  21. Jeff Dayton-Johnson & John Hoddinott, 2003. "Aid, policies and growth, redux," Department of Economics at Dalhousie University working papers archive redux2, Dalhousie, Department of Economics. [Downloadable!]
  22. Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January. [Downloadable!] (restricted)
    Other versions:
  23. Jean-Pierre Cling & Philippe De Vreyer & Mireille Razafindrakoto & François Roubaud, 2003. "La croissance ne suffit pas pour réduire la pauvreté : le rôle des inégalités," Working Papers DT/2003/04, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  24. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March. [Downloadable!] (restricted)
    Other versions:
  25. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal Of Fortune: Geography And Institutions In The Making Of The Modern World Income Distribution," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1231-1294, November. [Downloadable!] (restricted)
    Other versions:
  26. Burnside, Craig & Dollar, David, 2004. "Aid, policies, and growth : revisiting the evidence," Policy Research Working Paper Series 3251, The World Bank. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jean-Pierre Cling & Denis Cogneau & Jacques Loup & Jean-David Naudet & Jacques Loup & Mireille Razafindrakoto & François Roubaud, 2005. "Development, A question of opportunity? A critique of the 2006 World Development Report, "Equity and Development"," Working Papers DT/2005/15, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
    Other versions:
  2. Koch, Dirk-Jan, 2007. "Blind Spots on the Map of Aid Allocations: Concentration and Complementarity of International NGO Aid," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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