Advanced Search
MyIDEAS: Login to save this paper or follow this series

Aid, Debt Relief and New Sources of Finance for Meeting the Millennium Development Goals

Contents:

Author Info

  • Tony Addison

    ()

  • George Mavrotas
  • Mark McGillivray

Abstract

The Millennium Development Goals (MDGs) have lofty expectations regarding the impact of official development aid. Are these expectations valid? This paper surveys the literature on aid and growth. It finds that practically all aid studies since the late 1990s conclude that aid increases economic growth. By implication, therefore, it can be inferred that poverty would be higher in the absence of aid. As such the above- mentioned expectations are, to a certain extent, valid. The paper then reviews volumes of and trends in official development assistance since 1960, highlighting flows to Sub-Saharan Africa. A downturn in volumes in the 1990s is demonstrated. It asserts that poverty is higher and the MDGs are hard to achieve because of this downturn. It also asserts that while aid will be important, other sources of external finance are required to achieve the MDGs. The paper concludes by examining recent proposals regarding new sources of such finance. [Research Paper No. 2005/09]

Download Info

If 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.
File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document12162010240.1969568.pdf&fcategory=Articles&AId=2592&fref=repec
Our checks indicate that this address may not be valid because: 403 Forbidden. If this is indeed the case, please notify (Padma Prakash)
Download Restriction: no

Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:2592.

as in new window
Length:
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:ess:wpaper:id:2592

Note: Institutional Papers
Contact details of provider:
Web page: http://www.esocialsciences.org

Related research

Keywords: official development assistance; debt relief; growth; poverty; Millennium Development Goals; Sub-Saharan Africa; innovative sources of finance;

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Patrick GUILLAUMONT & Lisa CHAUVET, 1999. "Aid and Performance: A Reassessment," Working Papers 199910, CERDI.
  2. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2001. "On the Empirics of Foreign Aid and Growth," EPRU Working Paper Series, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics 03-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Sep 2003.
  3. George Mavrotas, 2002. "Foreign aid and fiscal response: Does aid disaggregation matter?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 138(3), pages 534-559, September.
  4. Addison, Tony & Chowdhury, Abdur R., 2003. "A Global Lottery and a Global Premium Bond," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Mark McGillivray & Bazoumana Ouattara, 2005. "Aid, Debt Burden and Government Fiscal Behaviour in Côte d'Ivoire," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 14(2), pages 247-269, June.
  6. Simon Feeny, 2005. "The Impact of Foreign Aid on Economic Growth in Papua New Guinea," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 41(6), pages 1092-1117.
  7. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, Elsevier, vol. 64(2), pages 547-570, April.
  8. C-J. Dalgaard & H. Hansen, 2001. "On Aid, Growth and Good Policies," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(6), pages 17-41.
  9. Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth," Working Papers, Center for Global Development 44, Center for Global Development.
  10. Catherine Pattillo & Hélène Poirson & Luca Antonio Ricci, 2011. "External Debt and Growth," Review of Economics and Institutions, Università di Perugia, Università di Perugia, vol. 2(3).
  11. Collier, Paul & Hoeffler, Anke, 2002. "Aid, policy, and growth in post-conflict societies," Policy Research Working Paper Series 2902, The World Bank.
  12. Michael A. Clemens & Steven Radelet, 2003. "The Millennium Challenge Account: How Much is Too Much, How Long is Long Enough?," Working Papers, Center for Global Development 23, Center for Global Development.
  13. John Hudson & Paul Mosley, 2001. "Aid policies and growth: in search of the holy grail," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(7), pages 1023-1038.
  14. Collier, Paul & Dollar, David, 1999. "Aid allocation and poverty reduction," Policy Research Working Paper Series 2041, The World Bank.
  15. Collier, Paul & Dehn, Jan, 2001. "Aid, shocks, and growth," Policy Research Working Paper Series 2688, The World Bank.
  16. Susana Franco-Rodriguez, & Mark McGillivray, & Oliver Morrissey, . "Aid and the Public Sector in Pakistan: Evidence with Endogenous Aid," Discussion Papers 98/2, University of Nottingham, CREDIT.
  17. R. Lensink & H. White, 2001. "Are There Negative Returns to Aid?," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(6), pages 42-65.
  18. Collier, Paul & Dollar, David, 2000. "Can the world cut poverty in half ? how policy reform and effective aid can meet international development goals," Policy Research Working Paper Series 2403, The World Bank.
  19. Paul Collier & David Dollar, 2004. "Development effectiveness: what have we learnt?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 114(496), pages F244-F271, 06.
  20. Oecd, 2003. "Aid Effectiveness and Selectivity: Integrating Multiple Objectives into Aid Allocations," OECD Journal on Development, OECD Publishing, OECD Publishing, vol. 4(3), pages 7-40.
  21. Robert Lensink & Howard White, 2000. "Assessing Aid: A Manifesto for Aid in the 21st Century?," Oxford Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 28(1), pages 5-18.
  22. Gomanee, Karuna & Girma, Sourafel & Morrissey, Oliver, 2005. "Aid and Growth in Sub-Saharan Africa: Accounting for Transmission Mechanisms," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2005/60, World Institute for Development Economic Research (UNU-WIDER).
  23. Shorrocks, Anthony & van der Hoeven, Rolph (ed.), 2005. "Growth, Inequality, and Poverty: Prospects for Pro-poor Economic Development," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199282241, October.
  24. Rati Ram, 2003. "Roles of Bilateral and Multilateral Aid in Economic Growth of Developing Countries," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 56(1), pages 95-110, February.
  25. Aryeetey, Ernest, 2004. "A Development-focused Allocation of the Special Drawing Rights," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  26. Atkinson, A. B. (ed.), 2004. "New Sources of Development Finance," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199278565, October.
  27. George Mavrotas & Bazoumana Ouattara, 2006. "Aid Disaggregation and the Public Sector in Aid-Recipient Economies: Some Evidence from Cote D'Ivoire," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 10(3), pages 434-451, 08.
  28. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
  29. Rukmani Gounder, 2001. "Aid-growth nexus: empirical evidence from Fiji," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 33(8), pages 1009-1019.
  30. Franco-Rodriguez, Susana & Morrissey, Oliver & McGillivray, Mark, 1998. "Aid and the Public Sector in Pakistan: Evidence with Endogenous Aid," World Development, Elsevier, Elsevier, vol. 26(7), pages 1241-1250, July.
  31. Micklewright, John & Wright, Anna, 2003. "Private Donations for International Development," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  32. Kosack, Stephen, 2003. "Effective Aid: How Democracy Allows Development Aid to Improve the Quality of Life," World Development, Elsevier, Elsevier, vol. 31(1), pages 1-22, January.
  33. McGillivray, Mark, 2003. "Aid Effectiveness and Selectivity: Integrating Multiple Objectives into Aid Allocations," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  34. Robert Lensink & Oliver Morrissey, 2000. "Aid instability as a measure of uncertainty and the positive impact of aid on growth," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(3), pages 31-49.
  35. Burnside, Craig & Dollar, David, 2004. "Aid, policies, and growth : revisiting the evidence," Policy Research Working Paper Series 3251, The World Bank.
  36. Peter S. Heller & Sanjeev Gupta, 2002. "More Aid—Making It Work for the Poor," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 3(4), pages 131-146, October.
  37. George Economides & Sarantis Kalyvitis & Apostolis Philippopoulos, 2004. "Do Foreign Aid Transfers Distort Incentives and Hurt Growth? Theory and Evidence from 75 Aid-recipient Countries," CESifo Working Paper Series 1156, CESifo Group Munich.
  38. Voxi Heinrich Amavilah, 1998. "German aid and trade versus Namibian GDP and labour productivity," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 30(5), pages 689-695.
  39. Mavrotas, George, 2003. "Which Types of Aid Have the Most Impact?," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  40. Lisa CHAUVET & Patrick GUILLAUMONT, 2003. "Aid and Growth Revisited: Policy, Economic Vulnerability and Political Instability," Working Papers 200327, CERDI.
  41. Swaroop, Vinaya & Jha, Shikha & Sunil Rajkumar, Andrew, 2000. "Fiscal effects of foreign aid in a federal system of governance: The case of India," Journal of Public Economics, Elsevier, Elsevier, vol. 77(3), pages 307-330, September.
  42. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, American Economic Association, vol. 90(4), pages 847-868, September.
  43. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fielding, David & Mavrotas, George, 2005. "The Volatility of Aid," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) DP2005/06, World Institute for Development Economic Research (UNU-WIDER).
  2. Raghbendra Jha & T. Palanivel, 2007. "Resource Augmentation for Meeting the Millennium Development Goals in the Asia Pacific Region," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2007-02, The Australian National University, Australia South Asia Research Centre.
  3. Addison, Tony, 2006. "International Finance and the Developing World: The Next Twenty Years," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2006/09, World Institute for Development Economic Research (UNU-WIDER).
  4. Sanjeev Gupta & Catherine A. Pattillo & Smita Wagh, 2006. "Are Donor Countries Giving More or Less Aid?," IMF Working Papers 06/1, International Monetary Fund.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ess:wpaper:id:2592. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.