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When aid misses the target: competing objectives, new classifications, and smarter delivery

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  • Dreher, Axel

Abstract

Western donors allocate over US$ 200 billion annually to official development assistance (ODA), yet much of this funding serves goals other than sustained recipient‑country development. In this paper, I argue that competing objectives and uses—including in‑donor refugee costs, geopolitical interests, and commercial ties—and inflated aid budgets undermine ODA’s credibility. I then argue for a narrow, development‑focused definition of ODA that excludes humanitarian relief and global public goods and suggest that concentrating development aid on infrastructure, education, and health—linked to a small number of ex ante conditions and delivering it primarily through budget support in democracies—would improve alignment with recipient priorities, bolster government accountability, and maximize developmental impact.

Suggested Citation

  • Dreher, Axel, 2025. "When aid misses the target: competing objectives, new classifications, and smarter delivery," World Development, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:wdevel:v:196:y:2025:i:c:s0305750x25002451
    DOI: 10.1016/j.worlddev.2025.107159
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