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International Aid in Light of Global Poverty and Inequality: Some Unsubtle Propositions

This paper re-asserts the importance of certain old-fashioned questions relating to international aid: what is the quantum of aid available in relation to the need for it? How may patterns of allocation, at both the dispensing and receiving ends of aid, be determined so as to take account of both poverty and inter-national inequality in the distribution of incomes? Can some simple and plausible rules of allocation be devised? If so, what correspondence does reality bear to these rules? The questions are addressed with the aid of some simple analytics relating to optimal budgetary intervention in the alleviation of poverty. The ideas discussed are clarified by means of data employed in elementary empirical illustrations.
Publisher:
UNU-WIDER
Series:
WIDER Research Paper
Volume:
2007/31
Title:
International Aid in Light of Global Poverty and Inequality: Some Unsubtle Propositions
Authors:
S. Subramanian
Publication date:
June 2007
ISSN Web:
1810-2611
ISBN Web:
9291909742
ISBN 13 Web:
9789291909742
Copyright holder:
© UNU-WIDER
Copyright year:
2007
Keywords:
international burden of poverty, lexicographic maximin solution, proportionality rule
JEL:
D63, F5
Project:
Development Aid: A Fresh Look
Sponsor:
The governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Norway (Royal Ministry of Foreign Affairs), Sweden (Swedish International Development Cooperation Agency-Sida) and the United Kingdom (Department for International Development).
Format:
online
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