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An Index of Donor Performance

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  • David Roodman

    (Center for Global Development)

Abstract

The Commitment to Development Index of the Center for Global Development rates 21 rich countries on the “development-friendliness” of their policies. It is revised and updated annually. In the 2004 edition, the component on foreign assistance combines quantitative and qualitative measures of official aid, and of fiscal policies that support private charitable giving. The quantitative measure uses a net transfers con- cept, as distinct from the net flows concept in the net Official Development Assistance measure of the Development Assistance Committee, which does not net out interest received. The qualitative factors are three: a penalty for tying aid; a discounting system that favors aid to poorer, better-governed recipients; and a penalty for “project proliferation.” The selectivity weighting approach avoids some conceptual problems inherent in the Dollar and Levin (2004) elasticity- based method. The proliferation pen-alty derives from a calibrated model of aid transaction cost developed in Roodman (forthcoming). The charitable giving measure is based on an estimate of the share of observed private giving to developing countries that is attributable to a) lower overall taxes (income effect) and b) specific tax incentives for giving (price effect). Despite the adjustments, overall results are dominated by differences in quantity of official aid given. This is because while there is a seven-fold range in net concessional transfers/GDP among the score countries, variation in overall aid quality across donors appears far lower, and private giving is generally small. Denmark, the Netherlands, Norway, and Sweden score highest while the largest donors in absolute terms, the United States and Japan, score in the bottom third. Standings by the 2004 methodology have been relatively stable since 1995.

Suggested Citation

  • David Roodman, 2004. "An Index of Donor Performance," Development and Comp Systems 0412004, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0412004
    Note: Type of Document - pdf; pages: 64. Center for Global Development Working Paper 32, revised 2004
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    References listed on IDEAS

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    2. David Roodman, 2004. "An Index of Donor Performance," Development and Comp Systems 0412004, University Library of Munich, Germany.
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    Cited by:

    1. Jacky Amprou & Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2007. "Aid Selectivity According to Augmented Criteria," The World Economy, Wiley Blackwell, vol. 30(5), pages 733-763, May.
    2. Lee, Bommi & Heyneman, Stephen P., 2013. "International Organizations and the Future of Education Assistance," WIDER Working Paper Series 018, World Institute for Development Economic Research (UNU-WIDER).
    3. KASUGA Hidefumi, 2007. "The Millennium Development Goals and Aid Allocation: Which donors give high-quality aid?," Discussion papers 07050, Research Institute of Economy, Trade and Industry (RIETI).
    4. Roodman, David, 2006. "Aid Project Proliferation and Absorptive Capacity," WIDER Working Paper Series 004, World Institute for Development Economic Research (UNU-WIDER).
    5. Danny Cassimon & Stijn Claessens & Bjorn Van Campenhout, 2007. "Empirical Evidence on the New International Aid Architecture," IMF Working Papers 07/277, International Monetary Fund.
    6. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does US aid buy UN general assembly votes? A disaggregated analysis," Public Choice, Springer, vol. 136(1), pages 139-164, July.
    7. Alberto Chong & Mark Gradstein, 2006. "Who’s Afraid of Foreign Aid? The Donors’ Perspective," CESifo Working Paper Series 1833, CESifo Group Munich.
    8. Alberto Chong & Mark Gradstein, 2006. "¿Quién tiene miedo de la ayuda extranjera? La perspectiva del donante," Research Department Publications 4453, Inter-American Development Bank, Research Department.
    9. Thiele, Rainer & Nunnenkamp, Peter & Dreher, Axel, 2006. "Sectoral aid priorities: Are donors really doing their best to achieve the millennium development goals?," Kiel Working Papers 1266, Kiel Institute for the World Economy (IfW).
    10. David Roodman & Scott Standley, 2006. "Tax policies to promote private charitable giving in DAC countries," Working Papers 82, Center for Global Development.
    11. Sanjeev Gupta & Catherine Pattillo & Smita Wagh, 2006. "Are Donor Countries Giving More or Less Aid?," Review of Development Economics, Wiley Blackwell, vol. 10(3), pages 535-552, August.
    12. Cepparulo, Alessandra & Giuriato, Luisa, 2009. "Aid Financing of Global Public Goods: an Update," MPRA Paper 22625, University Library of Munich, Germany.
    13. David Roodman, 2004. "An Index of Donor Performance," Working Papers 42, Center for Global Development.
    14. Pierre-Olivier Gourinchas & Olivier Jeanne, 2013. "Capital Flows to Developing Countries: The Allocation Puzzle," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1484-1515.
    15. Rashid, Salim & Shorish, Jamsheed & Sobh, Nahil, 2006. "Dynamic Contracting for Development Aid Projects. Mechanism Design and High Performance Computation," Economics Series 196, Institute for Advanced Studies.
    16. Rainer Thiele & Peter Nunnenkamp & Axel Dreher, 2007. "Do Donors Target Aid in Line with the Millennium Development Goals? A Sector Perspective of Aid Allocation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(4), pages 596-630, December.
    17. Sanjeev Gupta & Catherine A Pattillo & Smita Wagh, 2006. "Are Donor Countries Giving More or Less Aid?," IMF Working Papers 06/1, International Monetary Fund.
    18. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, vol. 56(C), pages 172-199.
    19. Riccardo Faini, 2006. "Foreign aid and fiscal policy," Development Working Papers 212, Centro Studi Luca d'Agliano, University of Milano.
    20. Wane, Waly, 2004. "The quality of foreign aid : country selectivity or donors incentives?," Policy Research Working Paper Series 3325, The World Bank.
    21. Dollar, David & Levin, Victoria, 2004. "Increasing selectivity of foreign aid, 1984-2002," Policy Research Working Paper Series 3299, The World Bank.
    22. Nicolas Depetris Chauvin & Aart Kraay, 2007. "Who Gets Debt Relief?," Journal of the European Economic Association, MIT Press, vol. 5(2-3), pages 333-342, 04-05.
    23. Heyneman, Stephen P. & Lee, Bommi, 2016. "International organizations and the future of education assistance," International Journal of Educational Development, Elsevier, vol. 48(C), pages 9-22.
    24. George Mavrotas & Peter Nunnenkamp, 2007. "Foreign Aid Heterogeneity: Issues and Agenda," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(4), pages 585-595, December.

    More about this item

    Keywords

    foreign aid; selectivity; performance measurement;

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • P - Economic Systems

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