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Are Donor Countries Giving More or Less Aid?

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  • Sanjeev Gupta
  • Catherine A. Pattillo
  • Smita Wagh
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    Abstract

    The volume of foreign aid has increased during the last four decades, albeit with interruptions in certain years. Over time, the major recipients have changed: while the share of aid to Asia has diminished since the 1980s, that destined for sub-Saharan Africa has grown. There is some evidence that, since the late 1990s, debt relief has assumed a larger share of the increased aid flows to sub-Saharan Africa. The share of technical cooperation-a component of aid that is viewed as being driven by donors-has risen. More recently, there has been an increased emphasis on providing budget support to recipient governments, especially in the form of debt relief. Donor harmonization, national ownership of development plans, and sound policies on the part of the recipients are crucial for the aid to be effective in reducing poverty.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/1.

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    Length: 29
    Date of creation: 01 Jan 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/1

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    Related research

    Keywords: Asia; Budgetary policy; Debt relief; debt; aid flows; development assistance; foreign aid; debt forgiveness; aid effectiveness; official development assistance; aid allocation; expenditures; loans; bilateral aid; interest; payments; foreign aid donor; public expenditure; aid pledges; development aid; debtor reporting; debt problems; taxpayers; repayment;

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    1. William Easterly & Ross Levine & David Roodman, 2004. "Aid, Policies, and Growth: Comment," American Economic Review, American Economic Association, vol. 94(3), pages 774-780, June.
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    3. Addison, Tony & Mavrotas, George & McGillivray, Mark, 2005. "Aid, Debt Relief and New Sources of Finance for Meeting the Millennium Development Goals," Working Paper Series RP2005/09, World Institute for Development Economic Research (UNU-WIDER).
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    14. 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, vol. 36(3), pages 31-49.
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    16. White, Howard, 2002. "Long-run Trends and Recent Developments in Official Assistance from Donor Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    17. David Roodman, 2004. "An Index of Donor Performance," Working Papers 42, Center for Global Development.
    18. A. Javier Hamann & Ales Bulir, 2006. "Volatility of Development Aid," IMF Working Papers 06/65, International Monetary Fund.
    19. Tito Cordella & Giovanni Dell'Ariccia, 2003. "Budget Support Versus Project Aid," IMF Working Papers 03/88, International Monetary Fund.
    20. Sanjeev Gupta & Benedict Clements & Erwin R. Tiongson, 2004. "Foreign Aid and Consumption Smoothing: Evidence from Global Food Aid," Review of Development Economics, Wiley Blackwell, vol. 8(3), pages 379-390, 08.
    21. Devarajan, Shantayanan & Swaroop, vinaya, 1998. "The implications of foreign aid fungibility for development assistance," Policy Research Working Paper Series 2022, The World Bank.
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    23. Steven Radelet, 2004. "Aid Effectiveness and the Millennium Development Goals," Working Papers 39, Center for Global Development.
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