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The Macroeconomic Challenges of Scaling Up Aid to Africa

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  • Yongzheng Yang
  • Robert Powell
  • Sanjeev Gupta

Abstract

This paper surveys the economic literature on the scaling-up of aid to Africa. It provides a checklist of issues that need to be considered when preparing a long term macroeconomic projection for a country involving the assumption of a significant increase in aid. Such scaling-up scenarios are most likely to be developed in the context of a country's efforts to achieve the Millennium Development Goals (MDGs) with the support of the international donor community. The paper stresses that when preparing a scaling-up scenario it is critical to have a detailed understanding of the likely use of additional aid flows.

Suggested Citation

  • Yongzheng Yang & Robert Powell & Sanjeev Gupta, 2005. "The Macroeconomic Challenges of Scaling Up Aid to Africa," IMF Working Papers 05/179, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:05/179
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    Cited by:

    1. Fukuda-Parr, Sakiko & Greenstein, Joshua & Stewart, David, 2013. "How Should MDG Success and Failure be Judged: Faster Progress or Achieving the Targets?," World Development, Elsevier, vol. 41(C), pages 19-30.
    2. Jayati Ghosh, 2006. "Forum 2006," Development and Change, International Institute of Social Studies, vol. 37(6), pages 1417-1423, November.
    3. Sylviane GUILLAUMONT JEANNENEY & Patrick GUILLAUMONT, 2006. "Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches," Working Papers 200614, CERDI.
    4. Wamboye, Evelyn & Adekola, Abel, 2013. "Foreign Aid, Legal Origin, Economic Growth and Africa’s Least Developed Countries," MPRA Paper 47846, University Library of Munich, Germany.
    5. Hiroyuki Hino & Atsushi Iimi, 2008. "Aid Effectiveness Revisited: Comparative Studies of Modalities of Aid to Asia and Africa," Discussion Paper Series 218, Research Institute for Economics & Business Administration, Kobe University.
    6. Chance Mwabutwa & Nicola Viegi & Manoel Bittencourt, 2012. "Monetary Policy Response to Capital Inflows in Form of Foreign Aid in Malawi," Working Papers 201232, University of Pretoria, Department of Economics.
    7. Jiro Honda, 2008. "Do IMF Programs Improve Economic Governance?," IMF Working Papers 08/114, International Monetary Fund.
    8. Bernard Walters, 2007. "The Fiscal Implications of Scaling up ODA to Deal with the HIV/AIDS Pandemic," Conference Paper 3, International Policy Centre for Inclusive Growth.
    9. Terry McKinley, 2005. "Why is ?The Dutch disease? always a disease? the macroeconomic consequences of scaling up ODA," Working Papers 10, International Policy Centre for Inclusive Growth.
    10. Ronelle Burger & Trudy Owens, 2013. "Receive Grants or Perish? The Survival Prospects of Ugandan Non-Governmental Organisations," Journal of Development Studies, Taylor & Francis Journals, vol. 49(9), pages 1284-1298, September.
    11. Nuno Baetas da Silva & João Sousa Andrade & António Portugal Duarte, 2016. "Alternative Sources of Dutch Disease: A Survey of the Literature," GEMF Working Papers 2016-10, GEMF, Faculty of Economics, University of Coimbra.
    12. Asmah, Emmanuel E. & Levin, Jorgen, 2008. "Aid-Financed Public Investments and the Dutch Disease: Evidence from Tanzania," Working Papers 2008:3, Örebro University, School of Business.
    13. Annalisa Fedelino & Gerd Schwartz & Marijn Verhoeven, 2006. "Aid Scaling Up; Do Wage Bill Ceilings Stand in the Way?," IMF Working Papers 06/106, International Monetary Fund.
    14. Todd D. Mattina, 2006. "Money Isn’t Everything; The Challenge of Scaling Up Aid to Achieve the Millennium Development Goals in Ethiopia," IMF Working Papers 06/192, International Monetary Fund.
    15. Fouda Owoundi, Jean-Pierre, 2009. "La convergence des politiques économiques dans la zone franc : où en est-on 15 ans après?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 85(3), pages 319-354, septembre.
    16. Szent-Ivanyi, Balazs, 2007. "State Fragility and International Development Cooperation," WIDER Working Paper Series 029, World Institute for Development Economic Research (UNU-WIDER).
    17. World Bank, 2013. "Liberia Public Expenditure Review : Options for Fiscal Space Enlargement," World Bank Other Operational Studies 16779, The World Bank.

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