Assessing the allocation of Italian foreign aid
This paper provides an assessment of Italian aid policy during the period 1983-2006. In comparison with other donors (DAC and G-7), the main stylized facts are: persistently lower aid/GDP ratio, greater recourse to multilateral channels, a higher percentage of ï¿½tiedï¿½ flows and relatively greater recourse to debt relief. Drawing on the empirical literature on aid allocation, we estimate the determinants of Italyï¿½s bilateral aid. We use three groups of explanatory variables, reflecting national-interest, humanitarian and selectivity-related motivations. We find that the distribution of Italian bilateral resources is significantly affected by both national-interest (like foreign policy or trade) and humanitarian motives, related to recipientsï¿½ needs; the latterï¿½s role, in particular, seems to have strengthened over time. There is ample room for improving selectivity, i.e., the capacity to direct ODA flows to ï¿½deservingï¿½ countries, where better policies and institutions are likely to increase aid effectiveness.
|Date of creation:||Mar 2009|
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- Jacky Amprou & Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2007.
"Aid Selectivity According to Augmented Criteria,"
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- Canavire-Bacarreza, Gustavo & Nunnenkamp, Peter & Thiele, Rainer & Triveño, Luis, 2005.
"Assessing the allocation of aid: Developmental concerns and the self-interest of donors,"
Kiel Working Papers
1253, Kiel Institute for the World Economy (IfW).
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- Canavire-Bacarreza, Gustavo & Nunnenkamp, Peter & Thiele, Rainer & Triveño, Luis, 2006. "Assessing the allocation of aid : developmental concerns and the self-interest of donors," Open Access Publications from Kiel Institute for the World Economy 3983, Kiel Institute for the World Economy (IfW).
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