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Fairness in the international allocation of development aid

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  • Mark McGillivray
  • Matthew Clarke

Abstract

This paper assesses the allocative performance of foreign aid donors. It does so by identifying the consistency of the share of donor aid allocated to each developing country with these their shares of global poverty. A given donor's allocative performance is maximised if the share of its aid to each developing country exactly equals its share of global poverty. This is equated with fairness in the international allocation of aid. The allocative performance of all donors, all bilateral donors, all multilateral agencies, all non†DAC donor countries, the EU, France, Germany, Japan, the United Kingdom and the United States for the years 2010–15 is assessed. The best performance is exhibited by all bilateral donors, while that for an individual donor is exhibited by the United Kingdom. Non†DAC donors exhibit the worst performance. The paper also identifies which developing countries receive the most and least aid relative to their shares of global poverty.

Suggested Citation

  • Mark McGillivray & Matthew Clarke, 2018. "Fairness in the international allocation of development aid," The World Economy, Wiley Blackwell, vol. 41(4), pages 1068-1087, April.
    • Handle: RePEc:bla:worlde:v:41:y:2018:i:4:p:1068-1087
    DOI: 10.1111/twec.12636
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    Cited by:

    1. Huong, Tran Thi Lan & Ha, Le Thanh, 2023. "A comprehensive analysis of the correlation between foreign aid and energy security in emerging countries: Does institutional quality matter?," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 952-968.
    2. Victor Ginsburgh & Juan D. Moreno-Ternero, 2018. "On Poverty and the International Allocation of Development Aid," Working Papers ECARES 2018-23, ULB -- Universite Libre de Bruxelles.
    3. Simon Feeny & Paul Hansen & Stephen Knowles & Mark McGillivray & Franz Ombler, 2019. "Donor motives, public preferences and the allocation of UK foreign aid: a discrete choice experiment approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(3), pages 511-537, August.

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