Skip to Content

UNU-WIDER Logo

30 Years of economics for development
ReCom-blue-yellow-green.jpg

WP/054 Does Aid Availability Affect Effectiveness in Reducing Poverty?

This paper addresses the issue of the impact of aid supply on aid effectiveness. We proceed in two steps. First, we review research works that deal with the problem of governance in donor-recipient relationships and are susceptible of highlighting effects of aggregate aid availability. Second, we provide a conceptual framework that explicitly incorporates a trade-off between considerations of needs and governance. We examine the impact of aid supply on the manner in which a donor agency allocates the available money between countries differing in terms of both needs and domestic governance. The central conclusion is that a donor’s utility function that embodies the need-governance trade-off and the associated optimization mechanism yield a meaningful rule to guide inter-country allocation of aid resources.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/54
Title:
WP/054 Does Aid Availability Affect Effectiveness in Reducing Poverty?
Authors:
François Bourguignon and Jean-Philippe Platteau
Publication date:
May 2012
ISBN 13 Web:
978-92-9230-517-8
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
aid effectiveness, aid allocation, governance, elite capture, monitoring
JEL:
O11, O17, O19, O43
Sponsor:
This working paper has been prepared within the UNU-WIDER project ‘Foreign Aid: Research and Communication (ReCom)’, directed by Tony Addison and Finn Tarp. UNU-WIDER gratefully acknowledges specific programme contributions from the governments of Denmark (Ministry of Foreign Affairs, Danida) and Sweden (Swedish International Development Cooperation Agency—Sida) for the Research and Communication (ReCom) programme. UNU-WIDER also acknowledges core financial support to UNU-WIDER’s work programme from the governments of Finland (Ministry for Foreign Affairs), the United Kingdom (Department for International Development), and the governments of Denmark and Sweden.
Format:
online
Back to Top

^ Back to top

1995-2014 United Nations University - World Institute for Development Economics Research

© CC BY-NC-SA 3.0 IGODisclaimer | Terms of Use
UNU-WIDER, Katajanokanlaituri 6 B, FI-00160 Helsinki, Finland
Tel: +358(0)9 6159911 | Fax: +358(0)9 61599333
mail: wider@wider.unu.edu/firstname.lastname@wider.unu.edu