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After Gleneagles: What Role for Loans in ODA?

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Author Info
Daniel Cohen
Pierre Jacquet
Helmut Reisen ()

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Abstract

Suppose a DAC donor earmarks $1 billion of taxpayers’ money for official development assistance (ODA). The donor may use two instruments as an outright grant or in combination with a market loan to produce a concessional loan of $2 billion with a percentage grant element of 50 per cent. Many nowadays think the choice should be clear: provide grants only, leave loans to the market. The purpose of this Policy Brief is to qualify and inform this choice....

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Paper provided by OECD Development Centre in its series OECD Development Centre Policy Briefs with number 31.

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Date of creation: Dec 2006
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Handle: RePEc:oec:devaab:31-en

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