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Pity the Finance Minister

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  • Peter S. Heller

Abstract

Substantial scaling up of aid flows will require development partners to address many issues, including the impact of higher aid flows on the competitiveness of aid recipients, the management of fiscal and monetary policy, the delivery of public services, behavioral incentives, and the rate of growth of the economy. Other issues will include the appropriate sequencing of aid-financed investments, balancing alternative expenditure priorities, the implications for fiscal and budget sustainability, and exit strategies from donor funding. Donors will need to ensure greater long-term predictability and reduced short-term volatility of aid. The international financial institutions can play a critical role in helping countries address these scaling-up issues.

Suggested Citation

  • Peter S. Heller, 2005. "Pity the Finance Minister," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(4), pages 69-110, October.
    • Handle: RePEc:wej:wldecn:223
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    File URL: https://www.worldeconomics.com/Journal/Papers/Article.details?ID=223
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    Cited by:

    1. James K. Boyce, 2007. "Public finance, aid and post-conflict recovery," UMASS Amherst Economics Working Papers 2007-09, University of Massachusetts Amherst, Department of Economics.
    2. Peter S. Heller & Menachem Katz & Xavier Debrun & Theo Thomas & Taline Koranchelian & Isabell Adenauer, 2006. "Making Fiscal Space Happen!: Managing Fiscal Policy in a World of Scaled-Up Aid," WIDER Working Paper Series RP2006-125, World Institute for Development Economic Research (UNU-WIDER).
    3. Pedro M G Martins, 2010. "Aid Absorption and Spending in Africa: A Panel Cointegration Approach," Discussion Papers 10/06, University of Nottingham, CREDIT.
    4. Strand, Jon, 2009. ""Revenue management"effects related to financial flows generated by climate policy," Policy Research Working Paper Series 5053, The World Bank.
    5. Roe, Alan R., 2011. "Aid and the Fiscal and Monetary Responses to Dutch Disease," WIDER Working Paper Series 095, World Institute for Development Economic Research (UNU-WIDER).

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