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

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  • Denis Cogneau

    ()
    (DIAL, Paris)

  • David Naudet

    ()
    (DIAL, Paris)

Abstract

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.

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Bibliographic Info

Paper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 110.

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Length: 27 pages
Date of creation: 12 Jul 2005
Date of revision:
Handle: RePEc:got:iaidps:110

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Keywords: International aid; Equality of Opportunity; Poverty Reduction;

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References

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  1. Daniel Kaufmann & Aart Kraay, 2004. "Governance Indicators, Aid Allocation, and the Millennium Challenge Account," Development and Comp Systems 0405013, EconWPA.
  2. Dollar, David & Alesina, Alberto, 2000. "Who Gives Foreign Aid to Whom and Why?," Scholarly Articles 4553020, Harvard University Department of Economics.
  3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  4. Thibault Gadjos & Eric Maurin, 2002. "Unequal Uncertainties and Uncertain Inequalities : An Axiomatic Approach," Working Papers 2002-32, Centre de Recherche en Economie et Statistique.
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  7. Collier, Paul & Dollar, David, 1999. "Aid allocation and poverty reduction," Policy Research Working Paper Series 2041, The World Bank.
  8. 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.
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  10. David Roodman, 2004. "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics," Development and Comp Systems 0412003, EconWPA.
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  17. Berthelemy, Jean-Claude & Tichit, Ariane, 2002. "Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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Citations

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Cited by:
  1. Sergio Tezanos Vázquez, 2009. "Geopolítica de la ayuda ¿Cómo optimizar el impacto de la ayuda sobre el crecimiento?," Documentos de trabajo sobre cooperación y desarrollo 200903, Cátedra de Cooperación Internacional y con Iberoamérica (COIBA), Universidad de Cantabria.
  2. Denis COGNEAU, 2012. "The Political Dimension Of Inequality During Economic Development," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 35, pages 11-36.
  3. Ceriani, Lidia & Verme, Paolo, 2013. "The income lever and the allocation of aid," Policy Research Working Paper Series 6367, The World Bank.
  4. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, Elsevier.
  5. Mark McGillivray, 2010. "Aid Allocation and Fragile States," Working Papers id:3062, eSocialSciences.
  6. Wood, Adrian, 2008. "Looking Ahead Optimally in Allocating Aid," World Development, Elsevier, vol. 36(7), pages 1135-1151, July.
  7. Denis Cogneau & Sylvie Lambert, 2006. "L'aide au développement et les autres flux nord-sud : Complémentarité ou substitution ?," OECD Development Centre Working Papers 251, OECD Publishing.
  8. Feeny, Simon & de Silva, Ashton, 2012. "Measuring absorptive capacity constraints to foreign aid," Economic Modelling, Elsevier, vol. 29(3), pages 725-733.
  9. Fowler, A.F. & Biekart, K., 2011. "Civic driven change: a narrative to bring politics back into civil society discourse," ISS Working Papers - General Series 529, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  10. McGillivray, Mark, 2006. "Aid Allocation and Fragile States," Working Paper Series DP2006/01, World Institute for Development Economic Research (UNU-WIDER).

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