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What is effective aid? How would donors allocate it?

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  • Charles Kenny

Abstract

There are significant weaknesses in some of the traditional justifications for assuming that aid will foster development. This paper looks at what the cross-national aid effectiveness literature suggests about effective aid, first in terms of promoting income growth and then for promoting other goals. This review forms the basis for a discussion of recommendations to improve aid effectiveness and a discussion of effective aid allocation. Given the multiple potential objectives for aid, there is no one right answer. However, it appears that there are a number of reforms to aid practices and distribution that might help to deliver a more significant return to aid resources. Il y a d'importantes faiblesses dans la pensee traditionnelle qui pretend que l'aide stimulera le developpement. Cet article etudie ce que dit la litterature sur l'efficacite de l'aide internationale a ce sujet, d'abord vis-a-vis de la croissance du revenu, puis au regard de ses autres objectifs. Ce bilan constitue une base pour des recommandations visant a ameliorer l'efficacite de l'aide et pour une discussion sur l'efficacite de l'attribution de l'aide. Etant donne les determinants multiples de l'allocation de l'aide, il n'y a pas une seule bonne reponse. Cependant, un certain nombre de reformes concernant les pratiques et la distribution de l'aide pourrait contribuer a ameliorer le rendement de l'aide.

Suggested Citation

  • Charles Kenny, 2008. "What is effective aid? How would donors allocate it?," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 330-346.
    • Handle: RePEc:taf:eurjdr:v:20:y:2008:i:2:p:330-346
    DOI: 10.1080/09578810802078704
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    Cited by:

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    2. Six, Clemens, 2008. "Was bedeutet Wirksamkeit von Entwicklung? Ein begriffsorientiertes Diskussionspapier," Working Papers 21, Austrian Foundation for Development Research (ÖFSE).
    3. Pedrosa-Garcia, Jose Antonio, 2017. "Trends and Features of Research on Foreign Aid: A Literature Review," MPRA Paper 82134, University Library of Munich, Germany.
    4. José Alves & Cláudia Couto & José Carlos Coelho, 2024. "The Impact of Foreign Aid on Aggregate Welfare Measures: A Panel Data Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1210-1230, March.
    5. Joseph Wright, 2009. "How Foreign Aid Can Foster Democratization in Authoritarian Regimes," American Journal of Political Science, John Wiley & Sons, vol. 53(3), pages 552-571, July.
    6. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
    7. Charles Kenny, William Savedoff, 2013. "Can Results-Based Payments Reduce Corruption?-Working Paper 345," Working Papers 345, Center for Global Development.
    8. Mario Biggeri & Federico Ciani & Andrea Ferrannini, 2017. "Aid Effectiveness and Multilevel Governance: The Case of a Value Chain Development Project in Rural Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(4), pages 843-865, August.
    9. Bah, El-hadj M. & Ward, Jeremy, 2011. "Effectiveness of foreign aid in Small Island Developing States," MPRA Paper 32062, University Library of Munich, Germany.
    10. M. Rodwan Abouharb & Erick Duchesne, 2019. "Economic Development and the World Bank," Social Sciences, MDPI, vol. 8(5), pages 1-30, May.
    11. Maria S. Basílio, 2014. "The Determinants of Multilateral Development Banks’ Participation in Infrastructure Projects," Journal of Infrastructure Development, India Development Foundation, vol. 6(2), pages 83-110, December.
    12. Malte Toetzke & Nicolas Banholzer & Stefan Feuerriegel, 2022. "Monitoring global development aid with machine learning," Nature Sustainability, Nature, vol. 5(6), pages 533-541, June.

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