Does Aid Availability Affect Effectiveness in Reducing Poverty? A Review Article

François Bourguignon, Jean Philippe Platteau

Research output: Contribution to journalArticlepeer-review

Abstract

This paper addresses the impact of aid supply on aid effectiveness. First, we review theoretical literature that deals 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.

Original languageEnglish (US)
Pages (from-to)6-16
Number of pages11
JournalWorld Development
Volume90
DOIs
StatePublished - Feb 1 2017

Keywords

  • aid allocation
  • aid effectiveness
  • governance
  • poverty reduction

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Sociology and Political Science
  • Economics and Econometrics

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