IDEAS home Printed from https://ideas.repec.org/a/wly/jintdv/v22y2010i7p906-919.html
   My bibliography  Save this article

Decentralised and cooperative aid provision with short-term and long-term aid

Author

Listed:
  • Jon Strand

Abstract

We analyze two donors providing long- and short-run aid to one receiving (poor) country, and who may give aid in coordinated or non-coordinated fashion. An elite controls receiver policy, and diverts resources away from a poor target group. When strategic moves are simultaneous, there is excessive wasteful short-run aid diversion, which could be made worse by donor cooperation. When donors move first, aid is lower, donor utility is higher, and donors should always cooperate. Investments, by the receiving country and due to long-term aid, is greater and the solution more efficient when investments are complements than when they are substitutes. The model characterizes donors that may be considered as “gullible”, or as “skeptical”. The former type gives generously but its aid is largely wasted; the latter gives less aid, but also wastes less. Copyright © 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Jon Strand, 2010. "Decentralised and cooperative aid provision with short-term and long-term aid," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 906-919.
    • Handle: RePEc:wly:jintdv:v:22:y:2010:i:7:p:906-919
    DOI: 10.1002/jid.1632
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/jid.1632
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/jid.1632?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Azam, Jean-Paul & Laffont, Jean-Jacques, 2003. "Contracting for aid," Journal of Development Economics, Elsevier, vol. 70(1), pages 25-58, February.
    2. Dollar, David & Svensson, Jakob, 2000. "What Explains the Success or Failure of Structural Adjustment Programmes?," Economic Journal, Royal Economic Society, vol. 110(466), pages 894-917, October.
    3. Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
    4. Alesina, Alberto & Dollar, David, 2000. "Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, vol. 5(1), pages 33-63, March.
    5. Raghuram G. Rajan & Arvind Subramanian, 2008. "Aid and Growth: What Does the Cross-Country Evidence Really Show?," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 643-665, November.
    6. Coate, Stephen, 1995. "Altruism, the Samaritan's Dilemma, and Government Transfer Policy," American Economic Review, American Economic Association, vol. 85(1), pages 46-57, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    2. Emmanuelle Auriol & Josepa Miquel-Florensa, 2019. "Taxing fragmented aid to improve aid efficiency," The Review of International Organizations, Springer, vol. 14(3), pages 453-477, September.
    3. Carsten Hefeker, 2006. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 241-252, May.
    4. Almuth Scholl, 2018. "Debt Relief for Poor Countries: Conditionality and Effectiveness," Economica, London School of Economics and Political Science, vol. 85(339), pages 626-648, July.
    5. SAWADA Yasuyuki & YAMADA Hiroyuki & KUROSAKI Takashi, 2008. "Is Aid Allocation Consistent with Global Poverty Reduction?: A Cross-Donor Comparison," Discussion papers 08025, Research Institute of Economy, Trade and Industry (RIETI).
    6. Scholl, Almuth, 2005. "Aid effectiveness and limited enforceable conditionality," SFB 649 Discussion Papers 2005-054, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    7. Almuth Scholl, 2009. "Aid Effectiveness and Limited Enforceable Conditionality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 12(2), pages 377-391, April.
    8. Altaghlibi, Moutaz & Wagener, Florian, 2019. "Unconditional aid and green growth," Journal of Economic Dynamics and Control, Elsevier, vol. 105(C), pages 158-181.
    9. Alok Kumar, 2014. "Samaritan's Dilemma, Time-Inconsistency and Foreign Aid: A Review of Theoretical Models," Department Discussion Papers 1405, Department of Economics, University of Victoria.
    10. Candel-Sánchez Francisco, 2014. "Incentives for Conditional Aid Effectiveness," Journal of Globalization and Development, De Gruyter, vol. 5(1), pages 75-102, June.
    11. SAWADA Yasuyuki & YAMADA Hiroyuki & KUROSAKI Takashi, 2008. "Is Aid Allocation Consistent with Global Poverty Reduction?: A Cross-donor comparison (Japanese)," Discussion Papers (Japanese) 08065, Research Institute of Economy, Trade and Industry (RIETI).
    12. Gaoussou Diarra, 2011. "Aid unpredictability and absorptive capacity: analyzing disbursement delays in Africa," Economics Bulletin, AccessEcon, vol. 31(1), pages 1004-1017.
    13. Hicks, Robert L. & Parks, Bradley C. & Tierney, Michael J., 2005. "Explaining the Allocation of Bilateral and Multilateral Environmental Aid to Developing Countries," 2005 Annual meeting, July 24-27, Providence, RI 19346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Izabela Jelovac & Frieda Vandeninden, 2008. "How should donors give foreign aid? Project aid versus budget support," Post-Print halshs-00293130, HAL.
    15. J. Vernon Henderson & Yong Suk Lee, 2015. "Organization of Disaster Aid Delivery: Spending Your Donations," Economic Development and Cultural Change, University of Chicago Press, vol. 63(4), pages 617-664.
    16. Azam, Jean-Paul & Berlinschi, Ruxanda, 2008. "The Aid-Migration of Trade-Off," IDEI Working Papers 538, Institut d'Économie Industrielle (IDEI), Toulouse.
    17. Annen, Kurt & Knack, Stephen, 2018. "On the delegation of aid implementation to multilateral agencies," Journal of Development Economics, Elsevier, vol. 133(C), pages 295-305.
    18. Paul A. Raschky & Manijeh Schwindt, 2016. "Aid, Catastrophes and the Samaritan's Dilemma," Economica, London School of Economics and Political Science, vol. 83(332), pages 624-645, October.
    19. Nagae, Akira & Katayama, Hajime & Takase, Koichi, 2022. "Donor aid allocation and accounting standards of recipients," Economic Modelling, Elsevier, vol. 106(C).
    20. repec:elg:eechap:15325_15 is not listed on IDEAS
    21. Stéphane Pallage & Michel A. Robe & Catherine Bérubé, 2006. "The Potential of Foreign Aid as Insurance," IMF Staff Papers, Palgrave Macmillan, vol. 53(3), pages 1-5.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:22:y:2010:i:7:p:906-919. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/journal/5102/home .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.