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Parabolic Welfare Functions and Development Assistance

In: Trade, Planning and Rural Development

Author

Listed:
  • Jan Tinbergen

Abstract

In this article in honour of Nurul Islam I make an attempt to contribute to a subject that both of us — and many other economists — have worked on for many years: development co-operation. My contribution deals with a lacuna I try to fill up, at least partly. The lacuna is that we don’t know what is the optimal amount of development assistance. For years we have used, in many discussions, the criterion of 0.7 per cent of donor countries’ GNP. It was proposed for the (First) Development Decade by H.W. Singer and his collaborators, for the Second Development Decade (1971–1980) by the Pearson Commission and recommended by the Brandt Commission. But it was hardly based on some optimality criterion. It was closer to a satisficing than to a maximising criterion; satisficing, to be sure, the donor countries. Moreover, most of the donor countries did not live up to what their own experts had recommended.

Suggested Citation

  • Jan Tinbergen, 1990. "Parabolic Welfare Functions and Development Assistance," Palgrave Macmillan Books, in: Azizur Rahman Khan & Rehman Sobhan (ed.), Trade, Planning and Rural Development, chapter 1, pages 9-17, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-11415-3_2
    DOI: 10.1007/978-1-349-11415-3_2
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