Needs-Based Targeting or Favoritism? The Regional Allocation of Multilateral Aid within Recipient Countries
AbstractThe regional allocation of aid within recipient countries has been largely ignored in the aid allocation literature. We use geocoded data on the location of aid projects financed by the World Bank and the African Development Bank within a sample of 27 recipient countries to assess the claim of donors that their aid targets needy population segments. We also assess whether political leaders in these countries direct aid funds to their home region, irrespective of regional needs. We do not find that the multilateral aid institutions take regional needs into account. Instead, favoritism appears to play an important role for location choices, in particular for physical infrastructure projects
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1838.
Length: 35 pages
Date of creation: Mar 2013
Date of revision:
aid allocation; within-country targeting; favoritism; World Bank; African Development Bank;
Find related papers by JEL classification:
- F35 - International Economics - - International Finance - - - Foreign Aid
- F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-04-06 (Africa)
- NEP-ALL-2013-04-06 (All new papers)
- NEP-CWA-2013-04-06 (Central & Western Asia)
- NEP-GEO-2013-04-06 (Economic Geography)
- NEP-PPM-2013-04-06 (Project, Program & Portfolio Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roland Hodler & Paul Raschky, 2010.
"Foreign Aid and Enlightened Leaders,"
Development Research Unit Working Paper Series
54-10, Monash University, Department of Economics.
- Stijn Claessens & Danny Cassimon & Bjorn Van Campenhout, 2009. "Evidence on Changes in Aid Allocation Criteria," World Bank Economic Review, World Bank Group, vol. 23(2), pages 185-208, June.
- Dollar, David & Levin, Victoria, 2006. "The Increasing Selectivity of Foreign Aid, 1984-2003," World Development, Elsevier, vol. 34(12), pages 2034-2046, December.
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