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Adapting Aid Allocation Criteria to Development Goals

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  • Patrick GUILLAUMONT

    (Ferdi)

Abstract

This paper analyzes aid allocation from a normative point of view. It attempts to design aid allocation criteria adapted to development goals and combining the principles of effectiveness and equity in a transparent and integrated framework. The common view about aid selectivity, which essentially refers to the quality of governance and policy indicators, is challenged for several reasons, in particular the weakness of the relationship between these indicators and aid effectiveness and the risk of countries facing exogeneous difficulties being left behind. Consistent with the lessons of the literature on aid effectiveness, new criteria for aid allocation are proposed, in particular that of structural vulnerability which has been shown to increase the marginal effectiveness of aid, because aid dampens its negative effects.Also available on the website of UN ECOSOC.

Suggested Citation

  • Patrick GUILLAUMONT, 2008. "Adapting Aid Allocation Criteria to Development Goals," Working Papers P01, FERDI.
    • Handle: RePEc:fdi:wpaper:691
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    References listed on IDEAS

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    1. Jacky Amprou & Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2007. "Aid Selectivity According to Augmented Criteria," The World Economy, Wiley Blackwell, vol. 30(5), pages 733-763, May.
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    16. Sylviane GUILLAUMONT JEANNENEY & Patrick GUILLAUMONT, 2006. "Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches," Working Papers 200614, CERDI.
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    18. Collier, Paul & Guillaumont, Patrick & Guillaumont, Sylviane & Gunning, Jan Willem, 1997. "Redesigning conditionality," World Development, Elsevier, vol. 25(9), pages 1399-1407, September.
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    20. Edward Anderson & Hugh Waddington, 2007. "Aid and the Millennium Development Goal Poverty Target: How Much is Required and How Should it be Allocated?," Oxford Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-31.
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    23. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
    24. Patrick GUILLAUMONT, 2007. "EVI and its Use. Design of an Economic Vulnerability Index and its Use for International Development Policy," Working Papers 200714, CERDI.
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    Cited by:

    1. Guillaumont, Patrick & Guillaumont Jeanneney, Sylviane & Wagner, Laurent, 2017. "How to Take into Account Vulnerability in Aid Allocation Criteria and Lack of Human Capital as Well: Improving the Performance Based Allocation," World Development, Elsevier, vol. 90(C), pages 27-40.
    2. Jan Willem GUNNING, 2008. "Aid Effectiveness: Can It Be Improved?," Working Papers P02, FERDI.
    3. Carter, Patrick, 2014. "Aid allocation rules," European Economic Review, Elsevier, vol. 71(C), pages 132-151.
    4. Mathilde Closset & Sosso Feindouno & Patrick Guillaumont & Catherine Simonet, 2017. "A Physical Vulnerability to Climate Change Index: Which are the most vulnerable developing countries?," Post-Print hal-01719925, HAL.
    5. Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2011. "State fragility and economic vulnerability: what is measured and why?," CERDI Working papers halshs-00554284, HAL.
    6. Minasyan, Anna, 2018. "Evidence-based allocation in global health: lessons learned for Germany," IDOS Discussion Papers 4/2018, German Institute of Development and Sustainability (IDOS).
    7. Patrick Guillaumont, 2011. "The concept of structural economic vulnerability and its relevance for the identification of the Least Developed Countries and other purposes," CDP Background Papers 012, United Nations, Department of Economics and Social Affairs.
    8. Patrick Guillaumont, 2009. "An Economic Vulnerability Index: Its Design and Use for International Development Policy," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 193-228.
    9. Patrick GUILLAUMONT & Catherine SIMONET, 2011. "To what extent are African Countries Vulnerable to climate change? Lessons from a new indicator of Physical Vulnerability to Climate Change," Working Papers I08, FERDI.
    10. Roland Kangni KPODAR & Maëlan LE GOFF, 2012. "Do Remittances Reduce Aid Dependency?," Working Papers P34, FERDI.
    11. Claire GOAVEC & Jean-François HOARAU, 2015. "Vulnérabilité Économique Structurelle Et Dépendance Touristique : Quels Enseignements Pour Les Petites Économies Insulaires En Développement," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 42, pages 157-188.
    12. Van Der Sluis, E. & Durowah, O., 2018. "Aid for Trade and Foreign Direct Investment: Effects on Poverty Reduction," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277307, International Association of Agricultural Economists.
    13. Lidia Ceriani & Paolo Verme, 2014. "The Income Lever and the Allocation of Aid," Journal of Development Studies, Taylor & Francis Journals, vol. 50(11), pages 1510-1522, November.
    14. Claire Goavec & Jean-François Hoarau, 2015. "Structural economic vulnerability and tourism dependence: new assessment for small island developing economies [Vulnérabilité économique structurelle et dépendance touristique : quels enseignements," Post-Print hal-01454720, HAL.
    15. Ha Hoang, 2014. "Aid darling and the European Union’s aid allocation policy: the case of Vietnam," Asia Europe Journal, Springer, vol. 12(3), pages 301-324, September.
    16. Patrick Guillaumont, 2011. "An Economic Vulnerability Index: Its Design and Use for International Development Policy," CERDI Working papers halshs-00554328, HAL.
    17. Patrick GUILLAUMONT & Sylviane GUILLAUMONT JEANNENEY, 2009. "Accounting for Vulnerability of African Countries in Performance Based Aid Allocation," Working Papers P08, FERDI.
    18. Gnangnon, Sèna Kimm, 2017. "Structural economic vulnerability, openness and bilateral development aid flows," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 77-95.
    19. Sylviane Guillaumont Jeanneney & Sampawende Jules Tapsoba, 2011. "Aid and Income Stabilization," CERDI Working papers halshs-00554289, HAL.
    20. Alan Gelb, 2010. "How Can Donors Create Incentives for Results and Flexibility for Fragile States? A Proposal for IDA," Working Papers id:3233, eSocialSciences.
    21. Mr. Maelan Le Goff & Mr. Kangni R Kpodar, 2011. "Do Remittances Reduce Aid Dependency?," IMF Working Papers 2011/246, International Monetary Fund.

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    More about this item

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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