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Is the Distribution of Foreign Aid MDG-sensitive?


  • Degol Hailu


This paper examines whether Official Development Assistance (ODA) is disproportionately allocated to countries that need to make the most progress on the Millennium Development Goals (MDGs). We expect MDG-sensitive distribution of foreign aid – or a good donor-recipient match – to be guided by the principles of the Global Partnership for Development. When we apply the MDG-sensitivity criteria for aid allocation, the results indicate that ODA allocation since the Millennium Declaration has become more MDG-sensitive – ODA is given to countries that need it most. While such trends in aid disbursements are commendable, total aid flows, however, fall short of promised levels.

Suggested Citation

  • Degol Hailu, 2012. "Is the Distribution of Foreign Aid MDG-sensitive?," Working Papers 111, United Nations, Department of Economics and Social Affairs.
  • Handle: RePEc:une:wpaper:111

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    Cited by:

    1. UNDP Regional Bureau for Africa, "undated". "An Econometric Investigation of the Causes of the Bifurcation of Within-Country Inequality Trends over 1991-2011 in sub-Saharan Africa," UNDP Africa Policy Notes 2017-17, United Nations Development Programme, Regional Bureau for Africa.

    More about this item


    ODA; aid; MDGs; aid distribution;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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