Project Aid or Budget Aid? The Interests of Governments and Financial Institutions
AbstractThe paper compares different aid policy instruments and their effect on the target group. Starting from a situation where interest groups compete for the resources of the government, international financial institutions aim to change the policy outcome. They can either directly support one group or condition their financial help to the government on its policy. Apart from a normative analysis which policy is more adequate to help one group, the paper also asks what happens if the IFI is driven by bureaucratic self-interest, and whether this distort policies. --
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Bibliographic InfoPaper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Kiel 2005 with number 19.
Date of creation: 2005
Date of revision:
aid policy; conditionality; international financial institutions; interest groups;
Other versions of this item:
- Carsten Hefeker, 2006. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 241-252, 05.
- Hefeker, Carsten, 2004. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," HWWA Discussion Papers 309, Hamburg Institute of International Economics (HWWA).
- F35 - International Economics - - International Finance - - - Foreign Aid
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
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