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The Macroeconomic Challenges of Scaling Up Aid to Africa

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  • Yongzheng Yang
  • Robert Powell
  • Sanjeev Gupta
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    Abstract

    This paper surveys the economic literature on the scaling-up of aid to Africa. It provides a checklist of issues that need to be considered when preparing a long term macroeconomic projection for a country involving the assumption of a significant increase in aid. Such scaling-up scenarios are most likely to be developed in the context of a country's efforts to achieve the Millennium Development Goals (MDGs) with the support of the international donor community. The paper stresses that when preparing a scaling-up scenario it is critical to have a detailed understanding of the likely use of additional aid flows.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/179.

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    Length: 63
    Date of creation: 01 Sep 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/179

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    Keywords: Governance; Exchange rates;

    This paper has been announced in the following NEP Reports:

    References

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    Citations

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    Cited by:
    1. Annalisa Fedelino & Gerd Schwartz & Marijn Verhoeven, 2006. "Aid Scaling Up: Do Wage Bill Ceilings Stand in the Way?," IMF Working Papers 06/106, International Monetary Fund.
    2. Bernard Walters, 2007. "The Fiscal Implications of Scaling up ODA to Deal with the HIV/AIDS Pandemic," Conference Paper 3, International Policy Centre for Inclusive Growth.
    3. Wamboye, Evelyn & Adekola, Abel, 2013. "Foreign Aid, Legal Origin, Economic Growth and Africa’s Least Developed Countries," MPRA Paper 47846, University Library of Munich, Germany.
    4. Hiroyuki Hino & Atsushi Iimi, 2008. "Aid Effectiveness Revisited: Comparative Studies of Modalities of Aid to Asia and Africa," Discussion Paper Series 218, Research Institute for Economics & Business Administration, Kobe University.
    5. Jiro Honda, 2008. "Do IMF Programs Improve Economic Governance?," IMF Working Papers 08/114, International Monetary Fund.
    6. Chance Mwabutwa & Nicola Viegi & Manoel Bittencourt, 2012. "Monetary Policy Response to Capital Inflows in Form of Foreign Aid in Malawi," Working Papers 201232, University of Pretoria, Department of Economics.
    7. Terry McKinley, 2005. "Why is ?The Dutch disease? always a disease? the macroeconomic consequences of scaling up ODA," Working Papers 10, International Policy Centre for Inclusive Growth.
    8. Asmah, Emmanuel E. & Levin, Jorgen, 2008. "Aid-Financed Public Investments and the Dutch Disease: Evidence from Tanzania," Working Papers 2008:3, Örebro University, School of Business.
    9. Todd D. Mattina, 2006. "Money Isn't Everything: The Challenge of Scaling Up Aid to Achieve the Millennium Development Goals in Ethiopia," IMF Working Papers 06/192, International Monetary Fund.

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