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30 Years of economics for development

The Sustainability of Development Financing

Project name/title
The Sustainability of Development Financing
Year:
2002
Theme:
Development and Finance
Abstract:
The real value of official aid flows fell for much of the 1990s, and private capital flows to low-income countries remain mostly limited. The decline in aid flows may endanger the development process, since they finance much of the development budget in many poor countries. However, while aid in aggregate is in decline, some have argued that better use is now made of each aid dollar, so the decline in aid flows may have been partially offset by an improvement in its quality. Whichever view is correct, it is certain that donors and recipients must reconsider their relationship, and this is the central focus of this project, which looks at the likely outcomes for the levels, structure, and effectiveness of official flows.
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