Determinants of State Fragility and Implications for Aid Allocation: An Assessment Based on the Country Indicators for Foreign Policy Project
AbstractThis paper is derived from our ongoing research on fragile states funded by the Canadian International Development Agency (CIDA) to help policymakers and analysts make decisions on where and how to allocate aid, especially in fragile state environments. In order for development assistance to have a measurable and positive impact on fragile states, it is necessary to understand both how and why they become fragile. First, we reconceptualize the meaning of state fragility with equal attention given to the authority, legitimacy and capacity of a state, collectively referred to as ALC. Measures of these ALC components corresponding to six different categories of state performance?economics, governance, security and crime, human development, demographics, and the environment?are collected for all countries for the period 1999-2005. Initial testing of our fragility index shows that fragility is driven by a number of factors, of which the level of development seems to be more important. We complement this analysis by examining state fragility using the ALC framework. Overall, the approach presented has the distinct advantage of identifying country-specific patterns of fragility while at the same time allowing for broad strategically relevant measures of comparative performance that can be of use to policymakers regarding allocation of aid at the sectoral and programming level. Notwithstanding the fact that aid may be allocated for political and strategic reasons, and that fragile states are under funded, we argue that aid that does flow to fragile states could be better targeted. Specifically, it could strengthen the underlying determinants of fragility by addressing fragile states? distinct and country-specific weaknesses in authority, legitimacy and capacity. Finally, we discuss policy implications of our analysis and directions for future research.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/46.
Length: 30 pages
Date of creation: 2008
Date of revision:
foreign aid; fragile states;
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.:
- William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer.
- David Dollar & Craig Burnside, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
- Paul Collier & Anke Hoeffler, 2004.
"Greed and Grievance in Civil War,"
Development and Comp Systems
- Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
- Collier, Paul & Dollar, David, 2002.
"Aid allocation and poverty reduction,"
European Economic Review,
Elsevier, vol. 46(8), pages 1475-1500, September.
- Torres, Magui Moreno & Anderson, Michael, 2004. "Fragile States: Defining Difficult Environments For Poverty Reduction," PRDE Working Papers 12822, Department for International Development (DFID) (UK).
- Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398.
- Mosley, Paul, 1980. "Aid, Savings and Growth Revisited," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(2), pages 79-95, May.
- Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004.
"Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth,"
44, Center for Global Development.
- Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, EconWPA.
- Bertocchi, Graziella & Guerzoni, Andrea, 2010.
"Growth, History, or Institutions? What Explains State Fragility in Sub-Saharan Africa,"
IZA Discussion Papers
4817, Institute for the Study of Labor (IZA).
- Bertocchi, Graziella & Guerzoni, Andrea, 2010. "Growth, History, or Institutions? What Explains State Fragility in Sub-Saharan Africa," CEPR Discussion Papers 7745, C.E.P.R. Discussion Papers.
- Graziella Bertocchi & Andrea Guerzoni, 2010. "Growth, History, or Institutions? What Explains State Fragility in Sub-Saharan Africa," Center for Economic Research (RECent) 044, University of Modena and Reggio E., Dept. of Economics.
- Graziella Bertocchi & Andrea Guerzoni, 2010. "Growth, History, or Institutions? What Explains State Fragility in Sub-Saharan Africa," Department of Economics 0625, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
- Bertocchi, Graziella, 2011.
"Growth, Colonization, and Institutional Development: In and Out of Africa,"
IZA Discussion Papers
5856, Institute for the Study of Labor (IZA).
- Graziella Bertocchi, 2011. "Growth, Colonization, and Institutional Development. In and Out of Africa," Center for Economic Research (RECent) 064, University of Modena and Reggio E., Dept. of Economics.
- Bertocchi, Graziella, 2011. "Growth, Colonization, and Institutional Development: In and Out of Africa," CEPR Discussion Papers 8486, C.E.P.R. Discussion Papers.
- Wim Naudé, 2010.
"Africa And The Global Economic Crisis: A Risk Assessment And Action Guide,"
EUI-RSCAS Working Papers
27, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Wim Naudé, 2010. "Africa And The Global Economic Crisis: A Risk Assessment And Action Guide," RSCAS Working Papers 2010/27, European University Institute.
- Naudé, Wim, 2010. "Africa and the global economic crisis: A Risk assessment and action guide," MPRA Paper 19856, University Library of Munich, Germany.
- Makochekanwa, Albert & Kwaramba, Marko, 2010. "Dwindling access to basic services in Zimbabwe," MPRA Paper 28271, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.