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Aid, Debt Relief and New Sources of Finance for Meeting the Millennium Development Goals

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  • Addison, Tony
  • Mavrotas, George
  • McGillivray, Mark

Abstract

The Millennium Development Goals (MDGs) have lofty expectations regarding the impact of official development aid. Are these expectations valid? This paper surveys the literature on aid and growth. It finds that practically all aid studies since the late 1990s conclude that aid increases economic growth. By implication, therefore, it can be inferred that poverty would be higher in the absence of aid. As such the above- mentioned expectations are, to a certain extent, valid. The paper then reviews volumes of and trends in official development assistance since 1960, highlighting flows to Sub-Saharan Africa. A downturn in volumes in the 1990s is demonstrated. It asserts that poverty is higher and the MDGs are hard to achieve because of this downturn. It also asserts that while aid will be important, other sources of external finance are required to achieve the MDGs. The paper concludes by examining recent proposals regarding new sources of such finance. [Research Paper No. 2005/09]
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  • Addison, Tony & Mavrotas, George & McGillivray, Mark, 2005. "Aid, Debt Relief and New Sources of Finance for Meeting the Millennium Development Goals," WIDER Working Paper Series 009, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:rp2005-09
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. George Mavrotas, 2009. "Introduction: Development Aid-Theory, Policies, and Performance," Review of Development Economics, Wiley Blackwell, vol. 13(s1), pages 373-381, August.
    2. Ralf Hepp, 2005. "Can Debt Relief Buy Growth?," International Finance 0510003, EconWPA.
    3. Addison, Tony, 2006. "International Finance and the Developing World: The Next Twenty Years," WIDER Working Paper Series 009, World Institute for Development Economic Research (UNU-WIDER).
    4. Mina Baliamoune-Lutz & George Mavrotas, 2009. "Aid Effectiveness: Looking at the Aid-Social Capital-Growth Nexus," Review of Development Economics, Wiley Blackwell, vol. 13(s1), pages 510-525, August.
    5. Fielding, David & Mavrotas, George, 2005. "The Volatility of Aid," WIDER Working Paper Series DP2005/06, World Institute for Development Economic Research (UNU-WIDER).
    6. Raghbendra Jha & T. Palanivel, 2007. "Resource Augmentation for Meeting the Millennium Development Goals in the Asia Pacific Region," ASARC Working Papers 2007-02, The Australian National University, Australia South Asia Research Centre.
    7. Sanjeev Gupta & Catherine A Pattillo & Smita Wagh, 2006. "Are Donor Countries Giving More or Less Aid?," IMF Working Papers 06/1, International Monetary Fund.
    8. David Fielding & George Mavrotas, 2008. "Aid Volatility and Donor-Recipient Characteristics in 'Difficult Partnership Countries'," Economica, London School of Economics and Political Science, vol. 75(299), pages 481-494, August.
    9. Mohammadou Nourou, 2014. "Foreign Aid And Development: Looking Beyond The Growth Effect," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(4), pages 99-115, December.
    10. Hassan, Sherif, 2016. "Seventy Years of Official Development Assistance: Reflections on the Working Age Population," MPRA Paper 74835, University Library of Munich, Germany.

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