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The Progressivity and Regressivity of Aid to the Social Sectors

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  • Baulch, Bob
  • Tam, Le Vi An

Abstract

This paper analyses the distribution of total aid and aid to the social sectors between 2009 and 2011. Its key findings are four-fold. First, despite the stated objectives of donors, total aid disbursements are broadly neutral, favouring neither the most deprived nor relatively well-off countries. Second, the pattern of social sector aid disbursements follows those for total aid. Third, the aid allocation patterns of bilateral and multilateral donors differ, with multilateral donors generally being more focused on the poorest countries. Finally, the distribution of aid for health and population is more progressive than that for education or other social sectors.

Suggested Citation

  • Baulch, Bob & Tam, Le Vi An, 2013. "The Progressivity and Regressivity of Aid to the Social Sectors," WIDER Working Paper Series 075, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2013-075
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    File URL: https://www.wider.unu.edu/sites/default/files/WP2013-075.pdf
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    References listed on IDEAS

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    1. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
    2. Fleck, Robert K. & Kilby, Christopher, 2010. "Changing aid regimes? U.S. foreign aid from the Cold War to the War on Terror," Journal of Development Economics, Elsevier, vol. 91(2), pages 185-197, March.
    3. Axel Dreher & Andreas Fuchs, 2011. "Does terror increase aid?," Public Choice, Springer, vol. 149(3), pages 337-363, December.
    4. Helen V. Milner & Dustin H. Tingley, 2010. "The Political Economy Of U.S. Foreign Aid: American Legislators And The Domestic Politics Of Aid," Economics and Politics, Wiley Blackwell, vol. 22(2), pages 200-232, July.
    5. Berthelemy, Jean-Claude & Tichit, Ariane, 2004. "Bilateral donors' aid allocation decisions--a three-dimensional panel analysis," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 253-274.
    6. Suits, Daniel B, 1977. "Measurement of Tax Progressivity," American Economic Review, American Economic Association, vol. 67(4), pages 747-752, September.
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    Keywords

    Economic assistance and foreign aid; Economic development; Public goods;

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