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Is the Distribution of Foreign Aid MDG-sensitive?

Author

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  • Degol Hailu

Abstract

This paper examines whether Official Development Assistance (ODA) is disproportionately allocated to countries that need to make the most progress on the Millennium Development Goals (MDGs). We expect MDG-sensitive distribution of foreign aid – or a good donor-recipient match – to be guided by the principles of the Global Partnership for Development. When we apply the MDG-sensitivity criteria for aid allocation, the results indicate that ODA allocation since the Millennium Declaration has become more MDG-sensitive – ODA is given to countries that need it most. While such trends in aid disbursements are commendable, total aid flows, however, fall short of promised levels.

Suggested Citation

  • Degol Hailu, 2012. "Is the Distribution of Foreign Aid MDG-sensitive?," Working Papers 111, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:111
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    File URL: http://www.un.org/en/development/desa/papers/2012
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    Citations

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    Cited by:

    1. repec:rac:ecchap:2017-17 is not listed on IDEAS
    2. Giovanni Andrea Cornia, "undated". "An econometric analysis of the bifurcation of within-country inequality trends in Sub-Saharan Africa, 1990–2011," UNDP Africa Policy Notes 2016-04, United Nations Development Programme, Regional Bureau for Africa.
    3. Zareena Begum Irfan & Arpita Nehra & Mohana Mondal, 2015. "Analyzing the Aid Effectiveness on the Living Standard: A Check-up on South East Asian Countries," Working Papers 2015-128, Madras School of Economics,Chennai,India.
    4. Shuvechha Khadka & Ajaya Dixit, 2014. "The changing intersection of society and development goals: An examination aimed at improving policy-making," Southern Voice Occasional Paper 10, Southern Voice.
    5. Cornia, Giovanni Andrea, 2017. "Income Inequality Trends in sub-Saharan Africa: Divergence, determinants and consequences: An Econometric Investigation of the Causes of the Bifurcation of within-Country Inequality Trends over 1991-2," UNDP Africa Reports 267777, United Nations Development Programme (UNDP).
    6. UNDP Regional Bureau for Africa, "undated". "An Econometric Investigation of the Causes of the Bifurcation of Within-Country Inequality Trends over 1991-2011 in sub-Saharan Africa," UNDP Africa Policy Notes 2017-17, United Nations Development Programme, Regional Bureau for Africa.
    7. Matthew S. Winters, 2013. "Introduction," International Interactions, Taylor & Francis Journals, vol. 39(3), pages 386-389, July.
    8. Shiladitya Chatterjee & Matthew Hammill & Nagesh Kumar & Swayamsiddha Panda, 2015. "Assessing India's Progress in Achieving the Millennium Development Goals: Key Drivers of Inter-state Variations," Development Papers 1502, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office.
    9. Ashma Vaidya & Audrey L. Mayer, 2016. "Critical Review of the Millennium Project in Nepal," Sustainability, MDPI, vol. 8(10), pages 1-23, October.
    10. Debapriya Bhattacharya & Towfiqul Islam Khan & Umme Salma & Gazi Joki Uddin, 2013. "Attaining the MDGs How Successful are the LDCs?," CPD Report 4, Centre for Policy Dialogue (CPD).

    More about this item

    Keywords

    ODA; aid; MDGs; aid distribution;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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