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Foreign Aid for Capacity-Building to Address Climate Change : Insights and Applications

  • Victor, David G.
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    The paper examines the role of foreign aid in building capacity to address climate change. While the experience with this topic is relatively recent and not yet extensive, analogous questions have arisen in many other areas of foreign aid. It is likely that climate change aid programmes work best in countries with well-functioning systems of public administration, sound management of public finances, and independent media that hold government accountable for performance–all factors widely known to make other aid programmes more effective and adaptive. As countries try to expand climate aid quickly, historical patterns suggest bilateral aid–which is easier for donors and recipients to control–is likely to expand much more than multilateral aid. A shift is also likely from an emphasis on mitigation of emissions to a growing role for adaptation. Expanding climate aid must confront what I call the `aid paradox´, which is that the conditions of national capacity under which aid is most likely to be effective are least likely to be present in the countries that are most in need of foreign aid because they cannot raise needed funds on their own.

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    File URL: https://www.wider.unu.edu/sites/default/files/WP2013-084.pdf
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    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2013/084.

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    Length: 26
    Date of creation: 2013
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    Handle: RePEc:unu:wpaper:wp2013-084
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    1. Almuth Scholl, 2005. "Aid Effectiveness and Limited Enforceable Conditionality," SFB 649 Discussion Papers SFB649DP2005-054, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany, revised Aug 2005.
    2. Hansen, Henrik & Tarp, Finn, 1999. "Aid Effectiveness Disputed," MPRA Paper 62290, University Library of Munich, Germany.
    3. Hristos Doucouliagos & Martin Paldam, 2005. "The Aid Effectiveness Literature. The Sad Result of 40 Years of Research," Economics Working Papers 2005-15, Department of Economics and Business Economics, Aarhus University.
    4. Jan Corfee-Morlot & Bruno Guay & Kate Larsen, 2009. "Financing Climate Change Mitigation: Towards a Framework for Measurement, Reporting and Verification," OECD/IEA Climate Change Expert Group Papers 2009/6, OECD Publishing.
    5. Clausen, Volker & Schürenberg-Frosch, Hannah, 2009. "Aid, Spending Strategies and Productivity Effects – A Multi-sectoral CGE Analysis for Zambia," Ruhr Economic Papers 127, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Barbara Buchner & Jessica Brown & Jan Corfee-Morlot, 2011. "Monitoring and Tracking Long-Term Finance to Support Climate Action," OECD/IEA Climate Change Expert Group Papers 2011/3, OECD Publishing.
    7. William Easterly, 2008. "Can the West Save Africa?," NBER Working Papers 14363, National Bureau of Economic Research, Inc.
    8. Sukumar Ganapati & Liguang Liu, 2009. "Sustainable development in the Clean Development Mechanism: the role of Designated National Authority in China and India," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(1), pages 43-60.
    9. Riddell, Roger C., 2008. "Does Foreign Aid Really Work?," OUP Catalogue, Oxford University Press, number 9780199544462, December.
    10. Michael A. Clemens & Steven Radelet & Rikhil R. Bhavnani & Samuel Bazzi, 2012. "Counting Chickens when they Hatch: Timing and the Effects of Aid on Growth," Economic Journal, Royal Economic Society, vol. 122(561), pages 590-617, 06.
    11. Dechezleprêtre, Antoine & Glachant, Matthieu & Ménière, Yann, 2009. "Technology transfer by CDM projects: A comparison of Brazil, China, India and Mexico," Energy Policy, Elsevier, vol. 37(2), pages 703-711, February.
    12. Martens,Bertin & Mummert,Uwe & Murrell,Peter & Seabright,Paul, 2008. "The Institutional Economics of Foreign Aid," Cambridge Books, Cambridge University Press, number 9780521055390, November.
    13. R. Lensink & H. White, 2001. "Are There Negative Returns to Aid?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 42-65.
    14. Hristos Doucouliagos & Martin Paldam, 2005. "Aid Effectiveness on Growth. A Meta Study," Economics Working Papers 2005-13, Department of Economics and Business Economics, Aarhus University.
    15. William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer.
    16. David Popp, 2011. "International Technology Transfer, Climate Change, and the Clean Development Mechanism," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(1), pages 131-152, Winter.
    17. Kanbur, Ravi & Sandler, Todd & Morrison, Kevin, 1999. "The Future of Development Assistance: Common Pools and International Public Goods," Staff General Research Papers 1629, Iowa State University, Department of Economics.
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