Project Aid or Budget Aid? The Interests of Governments and Financial Institutions
The paper compares different aid policy instruments and their effect on the target group. Starting from a situation where interest groups compete for the resources of the government, international financial institutions aim to change the policy outcome. They can either directly support one group or condition their financial help to the government on its policy. Apart from a normative analysis which policy is more adequate to help one group, the paper also asks what happens if the IFI is driven by bureaucratic self-interest, and whether this distort policies.
|Date of creation:||2005|
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4553020, Harvard University Department of Economics.
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- William Easterly, 2002.
"What did Structural Adjustment Adjust? The Association of Policies and Growth with Repeated IMF and World Bank Adjustment Loans,"
11, Center for Global Development.
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"World Bank Independence: A Model and Statistical Analysis of U.S. Influence,"
Vassar College Department of Economics Working Paper Series
53, Vassar College Department of Economics.
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- Axel Dreher & Nathan Jensen, 2005.
"Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions,"
KOF Working papers
05-118, KOF Swiss Economic Institute, ETH Zurich.
- Axel Dreher & Nathan Jensen, 2003. "Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions," International Finance 0310004, EconWPA, revised 08 Jan 2004.
- Carsten Hefeker & Katharina Michaelowa, 2005. "Can process conditionality enhance aid effectiveness?," Public Choice, Springer, vol. 122(1), pages 159-175, January.
- Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
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