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|
|Date of revision:|
|Contact details of provider:|| Postal: Katajanokanlaituri 6B, 00160 Helsinki|
Web page: http://www.wider.unu.edu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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).
- 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.
- Collier, Paul & Hoeffler, Anke, 2004.
"Aid, policy and growth in post-conflict societies,"
European Economic Review,
Elsevier, vol. 48(5), pages 1125-1145, October.
- Collier, Paul & Hoeffler, Anke, 2002. "Aid, policy, and growth in post-conflict societies," Policy Research Working Paper Series 2902, The World Bank.
- Rina Bhattacharya & Benedict J. Clements & Sanjeev Gupta & Shamsuddin Tareq & Alex Segura-Ubiergo & Todd D. Mattina, 2005.
"Rebuilding Fiscal Institutions in Postconflict Countries,"
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.
- 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.
- Dani Rodrik, 2006. "Institutions for High-Quality Growth: What They Are and How to Acquire Them," Chapters, 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.
- Davies, Victor A. B., 2007. "Capital flight and war," Policy Research Working Paper Series 4210, The World Bank.
- 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.
- 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.
- Addison, Tony & Chowdhury, Abdur R. & Murshed, S. Mansoob, 2002. "By How Much Does Conflict Reduce Financial Development?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- 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.
When requesting a correction, please mention this item's handle: RePEc:unu:wpaper:rp2008-07. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse)
If references are entirely missing, you can add them using this form.