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The Millennium Development Goals and Aid Allocation: Which donors give high-quality aid?

  • KASUGA Hidefumi

This paper evaluates donor performance by using data on aid for 10 sectors that are closely related to the Millennium Development Goals (MDGs). We utilize the MDGs indicators to measure the recipient's need for aid in each sector and investigate whether donors designate aid for specific sectors in the countries that need it most. Our results suggest that the majority of donors are selective in all the sectors. Not only the Nordic countries but also other large donors are selective and have a clear tendency to allocate more assistance to poor countries.

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File URL: http://www.rieti.go.jp/jp/publications/dp/07e050.pdf
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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 07050.

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Length: 31 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:eti:dpaper:07050
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  1. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
  2. Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc.
  3. David Roodman, 2004. "An Index of Donor Performance," Working Papers 42, Center for Global Development.
  4. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, vol. 64(2), pages 547-570, April.
  5. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  6. Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth," Working Papers 44, Center for Global Development.
  7. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank.
  8. David Roodman, 2004. "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics," Development and Comp Systems 0412003, EconWPA.
  9. William Easterly & Ross Levine & David Roodman, 2004. "Aid, Policies, and Growth: Comment," American Economic Review, American Economic Association, vol. 94(3), pages 774-780, June.
  10. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 3-22, Summer.
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