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Aid and fragile states

In: Handbook of Aid and Development

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  • Anke Hoeffler
  • Patricia Justino

Abstract

Fragile states have the greatest development needs but are the least likely to use aid effectively. We explore which fragile states receive most aid flows, which donors are particularly active in fragile states, and which type of projects are the focus of these aid flows. Evidence suggests that the high number of donors and fluctuations in annual aid volumes generate problems for recipients who are the least able to deal with the issues of donor coordination and budget planning under uncertainty. Furthermore, despite different needs, aid patterns to fragile countries are not very different from the average recipient country. We suggest that aid in fragile states could be best allocated to address the specific needs of “fragile” countries that may be at risk of falling into the “extremely fragile” category. Using specific aid flows to prevent such shifts could be a useful strategy for donors engaged in those countries.

Suggested Citation

  • Anke Hoeffler & Patricia Justino, 2024. "Aid and fragile states," Chapters, in: Raj M. Desai & Shantayanan Devarajan & Jennifer L. Tobin (ed.), Handbook of Aid and Development, chapter 14, pages 225-246, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20736_14
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    File URL: https://www.elgaronline.com/doi/10.4337/9781800886810.00020
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