Enhancing Effective Utilization of Aid in Fragile States
This paper explores the macroeconomic implications of aid flows in countries with weak institutions. It argues that these countries should take into account their overall macroeconomic position, their capacity to absorb aid at the sectoral and subnational levels, and the strength of their fiscal institutions in deciding how much and how fast to spend aid. These considerations may warrant a gradual use of aid, except when aid is provided for humanitarian purposes. There is some basis for frontloading spending for countries emerging from a conflict, otherwise fragile states should seek to smoothen their spending against the background of aid volatility and uncertainty.
|Date of creation:||2008|
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- Collier, Paul & Hoeffler, Anke, 2004.
"Aid, policy and growth in post-conflict societies,"
European Economic Review,
Elsevier, vol. 48(5), pages 1125-1145, October.
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- Gupta, Sanjeev & Clements, Benedict & Bhattacharya, Rina & Chakravarti, Shamit, 2004. "Fiscal consequences of armed conflict and terrorism in low- and middle-income countries," European Journal of Political Economy, Elsevier, vol. 20(2), pages 403-421, June.
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IMF Occasional Papers
247, International Monetary Fund.
- Sanjeev Gupta & Shamsuddin Tareq & Benedict Clements & Alex Segura-Ubiergo & Rina Bhattacharya, 2005. "Rebuilding Fiscal Institutions in Post-Conflict Countries," Public Economics 0504010, EconWPA.
- Christopher Adam & Paul Collier & Victor A.B. Davies, 2008. "Postconflict Monetary Reconstruction," World Bank Economic Review, World Bank Group, vol. 22(1), pages 87-112, January.
- Heller, Peter S. & Katz, Menachem & Debrun, Xavier & Thomas, Theo & Koranchelian, Taline & Adenauer, Isabell, 2006.
"Making Fiscal Space Happen! Managing Fiscal Policy in a World of Scaled-Up Aid,"
Working Paper Series
RP2006/125, World Institute for Development Economic Research (UNU-WIDER).
- Xavier Debrun & Peter S. Heller & Theo Thomas & Menachem Katz & Isabell Adenauer & Taline Koranchelian, 2006. "Making Fiscal Space Happen; Managing Fiscal Policy in a World of Scaled-Up Aid," IMF Working Papers 06/270, International Monetary Fund.
- Andrew Berg & Mumtaz Hussain & Shaun K. Roache & Amber A Mahone & Tokhir N Mirzoev & Shekhar Aiyar, 2007. "The Macroeconomics of Scaling Up Aid; Lessons from Recent Experience," IMF Occasional Papers 253, International Monetary Fund.
- Davies, Victor A. B., 2007. "Capital flight and war," Policy Research Working Paper Series 4210, The World Bank.
- Dani Rodrik, 2006.
"Institutions for High-Quality Growth: What They Are and How to Acquire Them,"
in: Institutions, Globalisation and Empowerment, chapter 2
Edward Elgar Publishing.
- Rodrik, Dani, 2000. "Institutions For High-Quality Growth: What They Are And How To Acquire Them," CEPR Discussion Papers 2370, C.E.P.R. Discussion Papers.
- Dani Rodrik, 2000. "Institutions for High-Quality Growth: What They are and How to Acquire Them," NBER Working Papers 7540, National Bureau of Economic Research, Inc.
- Elbadawi, Ibrahim A. & Kaltani, Linda & Schmidt-Hebbel, Klaus, 2007. "Post-conflict aid, real exchange rate adjustment, and catch-up growth," Policy Research Working Paper Series 4187, The World Bank.
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