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Development Assistance and Development Finance: Evidence and Global Policy Agendas

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  • Addison, Tony
  • Mavrotas, George
  • McGillivray, Mark

Abstract

Understanding the development effects of official aid is crucial to building a better bridge between research and policy. This paper reviews the current evidence regarding the impact of aid on growth and poverty reduction, and develops a new narrative. In the light of this narrative, the paper then examines aid trends, focusing on the regions of sub-Saharan Africa and the Pacific. The paper then turns to recent discussion of new and innovative sources of development finance and considers how research has influenced the policy debate through a recent World Institute for Development Economics Research (UNU-WIDER) study for the United Nations (UN) General Assembly. The paper concludes that aid broadly works, that poverty would be higher in the absence of aid, and that the shortfall in aid during the 1990s has, by implication, made it more difficult to meet the Millennium Development Goals (MDGs). Hence, a considerable catch-up in aid and other development finance flows is now necessary if poverty is to be substantially reduced by 2015. Copyright © 2005 John Wiley & Sons, Ltd.

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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2005/23.

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Length: 22 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:unu:wpaper:rp2005-23

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Keywords: official development assistance; growth; poverty; Millennium Development Goals; sub-Saharan Africa; Pacific; innovative sources;

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References

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Citations

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Cited by:
  1. Asongu Simplice, 2012. "Reversed Economics and Inhumanity of Development Assistance in Africa," Working Papers 12/034, African Governance and Development Institute..
  2. Asongu Simplice, 2012. "Institutional benchmarking of foreign aid effectiveness in Africa," Working Papers 12/028, African Governance and Development Institute..
  3. Larru, Jose Maria, 2006. "La ayuda al desarrollo: ¿reduce la pobreza?
    [Foreign Aid: reduce poverty? (in Spanish)]
    ," MPRA Paper 2341, University Library of Munich, Germany.
  4. Simplice A, Asongu, 2012. "Development thresholds of foreign aid effectiveness in Africa," MPRA Paper 38094, University Library of Munich, Germany.
  5. Andrew M. Fischer, 2009. "Putting aid in its place: Insights from early structuralists on aid and balance of payments and lessons for contemporary aid debates," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(6), pages 856-867.
  6. Tony Addison & George Mavrotas & Mark McGillivray, 2005. "Aid to Africa: an unfinished agenda," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 989-1001.
  7. George Mavrotas, 2005. "Aid heterogeneity: looking at aid effectiveness from a different angle," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 1019-1036.
  8. Baliamoune-Lutz, Mina, 2013. "The effectiveness of foreign aid to women.s equality organizations in the MENA: Does aid promote women.s political participation?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Asongu, Simplice A & Jellal, Mohamed, 2013. "On the channels of foreign aid to corruption," MPRA Paper 49378, University Library of Munich, Germany, revised 28 Aug 2013.
  10. Simon Feeny & Mark McGillivray, 2009. "Aid allocation to fragile states: Absorptive capacity constraints," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(5), pages 618-632.
  11. Addison, Tony & Baliamoune-Lutz, Mina N., 2013. "Aid and Dutch Disease: Evidence from Moroccan and Tunisian time-series data," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  12. Asongu, Simplice & Jellal, Mohamed, 2014. "International aid corruption and fiscal behavior policy," MPRA Paper 57192, University Library of Munich, Germany.
  13. Asongu Simplice, 2013. "Consult your gods: the questionable economics of development assistance in Africa," Working Papers 13/002, African Governance and Development Institute..
  14. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
  15. Fielding, David & McGillivray, Mark & Torres, Sebastian, 2006. "A Wider Approach to Aid Effectiveness: Correlated Impacts on Health, Wealth, Fertility and Education," Working Paper Series RP2006/23, World Institute for Development Economic Research (UNU-WIDER).
  16. Simplice A, Asongu, 2012. "The political economy of development assistance: peril to government quality dynamics in Africa," MPRA Paper 36543, University Library of Munich, Germany.

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