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Aid Effectiveness: Can It Be Improved?

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  • Jan Willem GUNNING

    (Vrije Universiteit Amsterdam)

Abstract

The last fifteen years have seen an intensive discussion on the effectiveness of aid. Part of the debate focused on the (often confusing and conflicting) evidence from growth regressions regarding the effect of aid on economic growth in recipient countries. A different discussion (probably of more interest to policy makers) concerned the implications of different forms of aid and different types of conditionality for the incentives for recipient governments to use the aid as intended by the donor. One of the most influential contributions to this discussion was the Assessing Aid report, published by the World Bank in 1998. It is often taken for granted that the lessons from this debate have by now been largely implemented. This is not the case. The debate is now focused on new concerns, notably on the fragmentation of aid and the lack of harmonization amongst donors. The Paris and Accra declarations bear witness to this development. This has left an unfinished agenda. In this paper we argue that there remains a gap between the rhetoric which suggests that the lessons of the debate on the failure of conditionality have been fully absorbed and the reality which is quite different.

Suggested Citation

  • Jan Willem GUNNING, 2008. "Aid Effectiveness: Can It Be Improved?," Working Papers P02, FERDI.
  • Handle: RePEc:fdi:wpaper:693
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    References listed on IDEAS

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    1. Patrick GUILLAUMONT, 2008. "Adapting Aid Allocation Criteria to Development Goals," Working Papers P01, FERDI.
    2. P. Guillaumont & L. Chauvet, 2001. "Aid and Performance: A Reassessment," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 66-92.
    3. Adam, Christopher S. & Gunning, Jan Willem, 2002. "Redesigning the Aid Contract: Donors' Use of Performance Indicators in Uganda," World Development, Elsevier, vol. 30(12), pages 2045-2056, December.
    4. William Easterly & Tobias Pfutze, 2008. "Where Does the Money Go? Best and Worst Practices in Foreign Aid," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 29-52, Spring.
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    Cited by:

    1. Monica Beuran & Gaël Raballand & Julio Revilla, 2011. "Improving Aid Effectiveness in Aid-Dependent Countries: Lessons from Zambia," Documents de travail du Centre d'Economie de la Sorbonne 11040, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. Naude, Wim, 2009. "The Global Economic Crisis after One Year: Is a New Paradigm for Recovery in Developing Countries Emerging?," WIDER Working Papers UNU-WIDER UNU Policy Brie, World Institute for Development Economic Research (UNU-WIDER).
    3. Naude Wim, 2011. "Global Finance after the Crisis: Reform Imperatives and Vested Interests," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-22, July.
    4. Monica Beuran & Gaël Raballand & Julio Revilla, 2011. "Improving aid effectiveness in aid-dependent countries : lessons from Zambia," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00611901, HAL.

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    More about this item

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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