Author: Shantayanan Devarajan
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 24

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Author: Vinaya Swaroop
Publisher:
ISBN:
Category :
Languages : en
Pages : 17

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To address the fungibility of foreign aid funds, a proposed new lending instrument - a public expenditure reform loan-would tie an institution's lending strategy to the recipient country's achieving mutually agreed-upon development goals.A foreign aid or foreign lending policy that focuses exclusively on project financing may have unintended consequences, report Devarajan and Swaroop. New research shows that aid intended for crucial social and economic sectors often merely substitutes for spending that recipient governments would have undertaken anyway and the funds that are thereby freed up are spent for other purposes.If the aid funds something that would have been done anyway, traditional ways of evaluating the aid's effectiveness are not really accurate. If aid funds are fungible and the recipient's public spending program is unsatisfactory, project lending may not be cost-effective. If the recipient's public spending program is satisfactory, perhaps the donor should finance a portion of it instead of financing individual projects. One solution to the problem of fungibility, then, is that donors could tie assistance to an overall public spending program (in the recipient country) that provides adequate resources to crucial sectors.To make this kind of reform operational, Devarajan and Swaroop propose a new lending instrument: a public expenditure reform loan (PERL). A PERL would tie an institution's lending strategy to the recipient country's achievement of mutually agreed-upon development goals.Everyone agrees that better donor coordination is needed, but it has been difficult to achieve because some donors tend to prefer projects (usually with the national flag flying over them). By agreeing on a public expenditure program and financing a portion of it, the Bank can credibly ask other donors to do the same.This paper - a joint product of the Development Research Group and the Poverty Reduction and Economic Management Network - is part of a larger effort in the Bank to understand better the development impact of aid.

Author: Swaroop
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author:
Publisher: World Bank Publications
ISBN: 9780195211238
Category : Political Science
Languages : en
Pages : 164

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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: Nabamita Dutta
Publisher: Springer Nature
ISBN: 3030221210
Category : Business & Economics
Languages : en
Pages : 302

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A response to the pressing need to address and clarify the substantial ambiguity within current literature, this edited volume aims to deepen readers’ understanding of the impact of foreign aid on development outcomes based on the latest findings in research over the past decade. Foreign aid has long been seen as one of two extremes: either beneficial or damaging, a blessing or a curse. Consequently, many readers perceive aid’s effectiveness based on the work of scholars who are assessing the impact of aid from one of two antithetical perspectives. This book takes a different approach, shedding light on recent research that can deepen our understanding of the complex relationship between aid and its aftereffects. Drawing from an extensive set of studies that have explored micro and macro impacts of foreign aid for recipient nations, chapter authors highlight more layered and nuanced findings, with a focus on donor characteristics, political motives, and an evaluation of aid projects and their effectiveness, including the differential impact based on type of aid. This volume is the first of its kind to unpack aid as a complex rather than a unitary concept and explore the wide areas of grey that have long enshrouded foreign aid.

Author: Tarhan Feyzioglu
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 48

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May 1996 Using a model of aid fungibility, the authors examine the relationship between foreign aid and public spending. Based on a panel of cross-country and time-series data, their results show that roughly 75 cents of every dollar given in net development assistance goes to current spending and 25 cents to capital spending in the recipient countries. But concessionary loans - a component of development assistance - stimulate far more government spending. Their results also show that aid increases both public and private investment. To test aid fungibility across both public spending categories, they use a newly constructed data series on the net disbursement of concessionary loans. They find that concessionary loans given to the transport and communication sector are fully nonfungible. But loans to the energy sector are converted into fungible monies and part of the funds leak into transport and communications. Loans to agriculture and education are also fungible. There is no evidence of concessionary funds being diverted for military purposes. Their results show that total public spending in the health sector has no impact on reducing infant mortality, but concessionary loans to the health sector do. This finding leads the authors to conclude that linking foreign aid to an agreed-upon public spending program in areas critical to development might be an effective way to transfer resources to developing countries.

Author: Finn Tarp
Publisher: Psychology Press
ISBN: 9780415215466
Category : Business & Economics
Languages : en
Pages : 522

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Aid has worked in the past but can be made to work better in the future. This book offers important new research and will appeal to those working in economics, politics and development studies as well as to governmental and aid professionals.

Author: Michael Lipton
Publisher: Routledge
ISBN: 1136889639
Category : Business & Economics
Languages : en
Pages : 325

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Much about India's economy and aid flows has changed in the last two decades. India's growth rate has quickened since economic liberalisation, the poverty head count has fallen and the volume and composition of its aid have changed as new issues of climate change and the environment have emerged.. Yet Does Aid Work in India?, first published in 1990, remains of great interest as a study of aid effectiveness in India's pre-liberalisation era. It identifies those sectors where aid-funded interventions succeeded, and where they failed. It explains how India avoided problems of aid dependence, and managed the political tensions that are associated with aid policy dialogue. More generally, it contains a useful commentary on and criticism of donors' aid evaluation procedures at that time and it highlights donor efforts in the difficult area of institution building. Despite the passage of time, many of the insights from India's earlier experience remain highly relevant to key issues of development assistance today.

Author: Roger C. Riddell
Publisher: OUP Oxford
ISBN: 0191623180
Category : Business & Economics
Languages : en
Pages : 531

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Foreign aid is now a $100bn business and is expanding more rapidly today than it has for a generation. But does it work? Indeed, is it needed at all? Other attempts to answer these important questions have been dominated by a focus on the impact of official aid provided by governments. But today possibly as much as 30 percent of aid is provided by Non-Governmental Organizations (NGOs), and over 10 percent is provided as emergency assistance. In this first-ever attempt to provide an overall assessment of aid, Roger Riddell presents a rigorous but highly readable account of aid, warts and all. Does Foreign Aid Really Work? sets out the evidence and exposes the instances where aid has failed and explains why. The book also examines the way that politics distorts aid, and disentangles the moral and ethical assumptions that lie behind the belief that aid does good. The book concludes by detailing the practical ways that aid needs to change if it is to be the effective force for good that its providers claim it is.

Author: Eric Jackson Labs
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 94

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