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Performance-based allocation (PBA) of foreign aid : still alive?

Author

Listed:
  • Patrick Guillaumont

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

  • Laurent Wagner

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)

Abstract

Performance-based allocation is a principle for the allocation of development assistance between countries, governed by a simple formula for several decades and considered as accepted wisdom, at least at the multilateral level. An official of one of the major donors once even said: "the PBA is a global public good". In this chapter we explain first what is the meaning of this common principle, now declined in various formulas, second how it has generated major misunderstandings, undermining its legitimacy, third why the exceptions progressively brought to the principle have limited its impact, and finally which options are opened for the revision, the replacement, or the extension of the PBA.

Suggested Citation

  • Patrick Guillaumont & Laurent Wagner, 2015. "Performance-based allocation (PBA) of foreign aid : still alive?," Post-Print hal-01206741, HAL.
    • Handle: RePEc:hal:journl:hal-01206741
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    Citations

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    Cited by:

    1. Pham, Ngoc-Sang & Pham, Thi Kim Cuong, 2020. "Effects of foreign aid on the recipient country’s economic growth," Journal of Mathematical Economics, Elsevier, vol. 86(C), pages 52-68.
    2. Platteau, Jean-Philippe & Bourguignon, François, 2017. "Aid Effectiveness: Revisiting the Trade-off Between Needs and Governance," CEPR Discussion Papers 12277, C.E.P.R. Discussion Papers.
    3. Patrick Guillaumont & Sylviane Guillaumont Jeanneney & Laurent Wagner, 2021. "How to Allocate New External Financing to African Countries? The Vulnerability Challenge. A Briefing in Response to the Paris Summit on Financing African Economies [Comment allouer les financements," Post-Print hal-03218024, HAL.
    4. Platteau, Jean-Philippe & Bourguignon, François, 2018. "Should a Poverty-Averse Donor Always Increase the Share of Governance-Improving Countries?," CEPR Discussion Papers 13163, C.E.P.R. Discussion Papers.

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