Governance and Aid Allocation in the International Development Association (IDA) PDF Download
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Author: Claire Teresa McCarville Markgraf
Publisher:
ISBN:
Category :
Languages : en
Pages : 90
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Book Description
This paper examines the relationship between governance and the foreign aid allocation of a World Bank agency, the International Development Association. In particular, the study investigates whether this major multilateral program's financial support for the development of the world's poorest countries consistently prioritizes good governance. A new dataset from the first decade of the twenty-first century, 2003-12, is used in three econometric estimation models to determine whether the quality of governance in recipient countries has had implications for aid allocation decisions. As in much of the literature in this area, the results are mixed. This finding itself raises important questions both about the relevance of a country's governance to aid allocation decisions and about the usefulness of good governance as a metric by which aid organizations are judged.
Author: Claire Teresa McCarville Markgraf
Publisher:
ISBN:
Category :
Languages : en
Pages : 90
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Book Description
This paper examines the relationship between governance and the foreign aid allocation of a World Bank agency, the International Development Association. In particular, the study investigates whether this major multilateral program's financial support for the development of the world's poorest countries consistently prioritizes good governance. A new dataset from the first decade of the twenty-first century, 2003-12, is used in three econometric estimation models to determine whether the quality of governance in recipient countries has had implications for aid allocation decisions. As in much of the literature in this area, the results are mixed. This finding itself raises important questions both about the relevance of a country's governance to aid allocation decisions and about the usefulness of good governance as a metric by which aid organizations are judged.
Author: Wil Hout
Publisher: Routledge
ISBN: 1134182384
Category : Business & Economics
Languages : en
Pages : 252
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Book Description
The first extended analysis of selectivity policies of important bilateral and multilateral aid donors, this book combines a policy-analytical with a quantitative-empirical approach. Bringing out the conflicts that may exist between foreign assistance agendas and the desire of governments in developing countries to set priorities for their national
Author:
Publisher: World Bank Publications
ISBN: 9780195211238
Category : Political Science
Languages : en
Pages : 164
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Book Description
Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.
Author: Eric Neumayer
Publisher: Routledge
ISBN: 1134428782
Category : Business & Economics
Languages : en
Pages : 130
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Book Description
Practically all donor countries that give aid claim to do so on the basis on the recipient's good governance, but do these claims have a real impact on the allocation of aid? Are democratic, human rights-respecting, countries with low levels of corruption and military expenditures actually likely to receive more aid than other countries?Using econo
Author: Kamil Akramov
Publisher:
ISBN: 9780896298095
Category : Developing countries
Languages : en
Pages : 3
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Book Description
Foreign aid to developing countries is a subject of heated debate among politicians, economists, and development specialists. Does aid promote economic growth and reduce poverty? Some argue that foreign aid has no effect on growth and may sometimes even undermine growth in aid recipient countries. Others suggest that foreign aid positively influences economic growth. Still others suggest that foreign aid has a positive impact on growth but this impact is conditional on a good institutional and policy environment. This debate has high stakes, given that foreign aid in the form of official development assistance (ODA) by leading donor nations reached over US$120 billion in 2010, the highest level ever recorded. This study contributes to the debate by taking a different approach from conventional analyses of the aid–growth relationship. Analysis of the aid–growth relationship shows no significant connection between aggregate aid and per capita GDP growth. Rather than treating ODA as a single category, the study disaggregates it into several different categories, based on which sector of a recipient’s economy the ODA is meant to help or promote. The study investigates whether changes in sectoral allocation of ODA influence the effectiveness of foreign aid in promoting economic growth. Although this is not an entirely new direction for research in this area, little is known about the possible causal impacts of aid to different sectors on economic growth. The results of the study are presented in Foreign Aid Allocation, Governance, & Economic Growth, recently published by the University of Pennsylvania Press for IFPRI.
Author: Stephen Knack
Publisher:
ISBN:
Category :
Languages : en
Pages : 29
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Book Description
This study investigates the effects of the World Bank's exogenously-determined income threshold for eligibility for concessionary International Development Association (IDA) loans on the allocations of bilateral donors. The donors might interpret the World Bank's policies and allocations across recipients as informative signals of where their own aid might be used most effectively. Alternatively, other donors might compensate for reduced IDA allocations by increasing their own aid. This paper shows that the signaling effect dominates any crowding out effects. The analysis uses panel data with country fixed effects and finds that aid from the bilateral donor countries is significantly reduced after countries cross the IDA income cutoff, controlling for other determinants of aid. Allocations by other donors are not sensitive to actual IDA disbursements, only to the IDA income threshold. Because crossing the income cutoff for eligibility significantly reduces aid levels from other donors as well as from the World Bank, government officials in recipient countries may have an incentive to manipulate their national accounts data to understate per capita income when it is near the IDA threshold. However, tests for "bunching" of observations just below the income threshold find no evidence to support data manipulation concerns. These findings suggest that graduation from IDA should be an even more gradual process than it already is, to dampen the sharp drops in aid experienced by countries after crossing an arbitrary income threshold.
Author: World Bank. Independent Evaluation Group
Publisher: World Bank Publications
ISBN: 0821384279
Category : Political Science
Languages : en
Pages : 170
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Book Description
The World Bank's Country Policy and Institutional Assessment (CPIA) assesses the conduciveness of a country's policy and institutional framework to poverty reduction, sustainable growth, and the effective use of development assistance.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: Maria Angelica Prada-Uribe
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The use of indicators in development cooperation has increased as a result of two main phenomena, the constant obsession to determine aid effectiveness and the establishment of quantifiable goals such as the Millennium Development Goals. More recently development indicators have been used to measure States' performance in order to determine the distribution of aid, thus addressing simultaneously the problems of aid effectiveness and aid allocation. By using indicators the donor community has managed to give an aura of objectivity and transparency to its decisions and to the model of development that is expected to be implemented by States in the South. However, in reality indicators are concealing a determined development common sense promoted by the donor, which is neither true nor objective since development knowledge remains contested. As previous scholarship has noted, indicators have two effects, a knowledge and a governance effect. A close analysis of the genealogy of the International Development Association's (IDA) Performance Based Allocation System reveals these effects, as a purportedly objective knowledge of development is produced by the indicator, and this knowledge influences the policies and regulations of receiving States. The structure and content of the indicator also has the effect of laying blame for underdevelopment on the receiving State. As this paper argues, IDA's indicator mainly embodies a particular brand of development theory, that legitimizes economic approaches to development by incorporating some social and human concerns.
Author: Kamiljon T. Akramov
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 181
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Book Description
This dissertation addresses foreign aid allocation and development effectiveness. This is an important issue because each year donors transfer tens of billions of dollars in foreign aid to developing countries. Moreover, based on new pledges and greater commitments to development assistance from donor nations, there is a possibility of scaling up of foreign development assistance far beyond the current levels. From the donors' perspective, the commitment to increase aid flows to developing countries is only the starting point. This, in turn, raises issues regarding the role of the donors' aid allocation policies in ensuring aid effectiveness. This dissertation examines some important propositions that relate governance to foreign aid allocation and effectiveness. The author unravels the critical heterogeneous impacts of governance and different aid categories on development outcomes. One striking finding suggests that aid to the production sector can be effective in promoting growth in countries with a low quality of governance. However, aid allocated to economic infrastructure is efficient in countries with medium and high quality of governance.
