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Does Aid Availability Affect Effectiveness in Reducing Poverty?

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  • François Bourguignon
  • Jean-Philippe Platteau

Abstract

This paper addresses the issue of the impact of aid supply on aid effectiveness. We proceed in two steps. First, we review research works that deal with the problem of governance in donor-recipient relationships and are susceptible of highlighting effects of aggregate aid availability. Second, we provide a conceptual framework that explicitly incorporates a trade-off between considerations of needs and governance. We examine the impact of aid supply on the manner in which a donor agency allocates the available money between countries differing in terms of both needs and domestic governance.

Suggested Citation

  • François Bourguignon & Jean-Philippe Platteau, 2012. "Does Aid Availability Affect Effectiveness in Reducing Poverty?," WIDER Working Paper Series wp-2012-054, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-054
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2012-054.pdf
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    References listed on IDEAS

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    1. Svensson, Jakob, 2000. "When is foreign aid policy credible? Aid dependence and conditionality," Journal of Development Economics, Elsevier, vol. 61(1), pages 61-84, February.
    2. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
    3. Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
    4. Tornell, Aaron & Lane, Philip R., 1998. "Are windfalls a curse?: A non-representative agent model of the current account," Journal of International Economics, Elsevier, vol. 44(1), pages 83-112, February.
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    Cited by:

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    2. Nabamita Dutta & Deepraj Mukherjee & Sanjukta Roy, 2015. "Re-examining the relationship between domestic investment and foreign aid: does political stability matter?," International Review of Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 259-286, May.

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