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

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  • 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]

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

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Date of creation: Jun 2010
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Handle: RePEc:ess:wpaper:id:2592

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

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Citations

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Cited by:
  1. Sanjeev Gupta & Catherine A. Pattillo & Smita Wagh, 2006. "Are Donor Countries Giving More or Less Aid?," IMF Working Papers 06/1, International Monetary Fund.
  2. Addison, Tony, 2006. "International Finance and the Developing World: The Next Twenty Years," Working Paper Series RP2006/09, World Institute for Development Economic Research (UNU-WIDER).
  3. George Mavrotas & David Fielding, 2010. "The Volatility of Aid," Working Papers id:3166, eSocialSciences.
  4. Raghbendra Jha & T. Palanivel, 2007. "Resource Augmentation for Meeting the Millennium Development Goals in the Asia Pacific Region," Departmental Working Papers 2007-02, The Australian National University, Arndt-Corden Department of Economics.

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