Does the World Bank have a micro-macro paradox or do the data deceive?
AbstractIn 1986, Mosely first drew attention to an apparent paradox in the performance of international aid. Microeconomic data from evaluations of aid financed projects showed a majority of projects were successful, whereas macroeconomic data from regressions of aid on growth were discouraging. The paradox, if real, implied that the aggregate impact of aid was less the sum of its parts. Mosely asked whether the paradox was real of whether the “data deceived.” This question, which has come to be equated with the issue of whether aid works, has been the subject of numerous cross-country regressions to test whether aid has an impact on growth (or related variables). But the regression results have been inconclusive, and the methodology has come under attack. Evidence from case studies offers an alternative test. One prominent case study approach is that of Picciotto (2009), which claims to find strong evidence for the existence of the paradox, namely the fact that one third of World Bank country assistance program evaluations show success at the project (micro) level but not at the country (macro) level. This paper re-evaluates Piciotto’s claimed findings.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by Development Policy Centre, Crawford School of Public Policy, The Australian National University in its series Development Policy Centre Discussion Papers with number 1105.
Date of creation: Jun 2011
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: http://devpolicy.anu.edu.au/
More information through EDIRC
aid; aid effectiveness; world bank;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Andrew McNee, 2012. "Rethinking Health Sector Wide Approaches through the lens of Aid Effectiveness," Development Policy Centre Discussion Papers 1214, Development Policy Centre, Crawford School of Public Policy, The Australian National University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cleo Fleming).
If references are entirely missing, you can add them using this form.