From ReCom
- Research and Communication on Foreign Aid
Aid in a Post-2015 World
UNU-WIDER summary and overview - 27 May 2014
Abstract: The
ReCom – Research and Communication on Foreign Aid – programme
produced 247 original studies. More than 300 researchers from 59
countries came together and provided evidence on what does and could
work in development, and what can be transferred and scaled up.
ReCom’s five thematic areas are summarized in comprehensive
Position Papers on: Aid, Growth and Employment, Aid and the Social
Sectors; Aid and Gender Equality; Aid, Governance and Fragility; and
Aid, Environment and Climate Change. ReCom research was communicated
and tested in seven international Results Meetings, 83 seminar and
conference presentations across the world, and an impressive series
of academic outlets. The ReCom website http://recom.wider.unu.edu/
provides access to working papers, videos and research summaries.
Together this material offers an unprecedented insight into what
moves societies forward, what achieves change, and what aid can and
does achieve.
Following the guidelines established at the outset, ReCom
research was not meant to simply compile small ‘best practice’
projects, hoping that these might add up to systematic large scale
impact. Instead the focus has been on synthesizing what aid has
produced in terms of outputs and outcomes and on contributing to
systematic thinking and reflection with a view to improving existing
knowledge about development assistance. An old saying suggests that
success is not doing extraordinary things – but doing ordinary
things extraordinarily well. High impact aid is associated with
doing many ordinary things, but also with doing the extraordinary,
in less than ideal circumstances. In aid’s daily practice,
context, political acumen and sequencing are indispensable to
complement technical proficiency and expert identification of needs.
As we approach 2015, the task of achieving and sustaining
large-scale impact – ‘going to scale’ – stands out as aid’s
greatest challenge.
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United
Nations University
World Institute for
Development Economic Reseach: |
From UNU-WIDER working papers
series 2010
Tony Addison, Channing Arndt, and Finn Tarp
The Triple Crisis and the Global Aid Architecture
The global economy is passing through
a period of profound change. The immediate
concern is with the financial crisis, originating in the North. The
South is affected via
reduced demand and lower prices for their exports, reduced private
financial flows, and
falling remittances. This is the first crisis. Simultaneously, climate
change remains
unchecked, with the growth in greenhouse gas emissions exceeding
previous estimates.
This is the second crisis. Finally, malnutrition and hunger are on the
rise, propelled by
the recent inflation in global food prices. This constitutes the third
crisis. These three
crises interact to undermine the prosperity of present and future
generations. Each has
implications for international aid and underline the need for concerted
action.
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The Paris Declaration on Aid Effectiveness (2005)
and the Accra Agenda for Action (2008)
1. We, Ministers of developed and developing countries responsible for promoting development and Heads of
multilateral and bilateral development institutions, meeting in Paris on 2 March 2005, resolve to take far-reaching and
monitorable actions to reform the ways we deliver and manage aid as we look ahead to the UN five-year review of the
Millennium Declaration and the Millennium Development Goals (MDGs) later this year. As in Monterrey, we recognise
that while the volumes of aid and other development resources must increase to achieve these goals, aid effectiveness
must increase significantly as well to support partner country efforts to strengthen governance and improve development
performance. This will be all the more important if existing and new bilateral and multilateral initiatives lead to significant
further increases in aid.
2. At this High-Level Forum on Aid Effectiveness, we followed up on the Declaration adopted at the High-Level Forum
on Harmonisation in Rome (February 2003) and the core principles put forward at the Marrakech Roundtable on Managing
for Development Results (February 2004) because we believe they will increase the impact aid has in reducing poverty
and inequality, increasing growth, building capacity and accelerating achievement of the MDGs.
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Center for Global
Development - Paper Number 167 - March 2009
The End of ODA:
Death and Rebirth of a Global Public Policy
Jean-Michel Severino and Olivier Ray
The world of international development assistance is undergoing three concomitant
revolutions, which concur to the emergence of a truly global policy. First, it is living
through a diversification of the goals it is asked to pursue: to its traditional objective
of ushering convergence between less and more developed economies have
progressively been adjoined those of financing access to essential services and
protecting global public goods. Secondly, faced with this new array of challenges,
the world of development aid has demonstrated an impressive capacity to increase
the number and diversity of its players, generating a governance conundrum for this
eminently fragmented global policy. Thirdly, the instruments used by this expanding
array of actors to achieve a broader range of policy objectives have themselves
mushroomed, in the wake of innovations in mainstream financial markets. Yet
surprisingly, this triple revolution in goals, actors and tools has not yet impacted the
way we measure both the financial volumes dedicated to this emerging global policy
nor the concrete impacts it aims to achieve. This paper argues for the need to move
from the conventional measure of Official Development Assistance to the
construction of clearer benchmarks for what ultimately matters: resources and
results that concur to 21st century international development.
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From DFID - Department for International Development
Bilateral and Multilateral Aid Reviews
On 1 March 2011, the Secretary of State for International Development, Andrew Mitchell
outlined the findings of both the Multilateral and Bilateral Aid Reviews.
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RP2004/44
Peter Burnell:
Foreign
Aid Resurgent: New Spirit or Old Hangover?
(PDF
199KB)
This study is premised on the view that reports circulating in the
1990s, claiming
foreign aid was in terminal crisis, were premature. Aid’s reviving
fortunes are explained
in terms both of a growing awareness of the uneven implications of
globalization and
the after-effects of the terrorist events of 11 September 2001. However
these two
‘drivers’ make uneasy partners. Furthermore, aid for democratization,
argued in the
1990s to be an instrument for indirectly addressing socioeconomic
weakness and
improving development aid’s effectiveness—making it a positive feature
in a bleak
decade—is increasingly seen as problematic. For now, aid’s resurgence
should target
pro-poor development rather than democratic reform, although the
likelihood is that old
fashioned determinants of realpolitik will continue to get in the way.
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RP2005/54
Mark McGillivray, Simon Feeny, Niels Hermes and Robert Lensink:
It
Works; It Doesn’t; It Can, But That Depends…: 50 Years of Controversy
over
the Macroeconomic Impact of Development Aid
(PDF
254KB)
This paper surveys 50 years of empirical research on the macroeconomic
impact of aid,
looking mainly at studies examining the link between aid and growth. It
argues that
studies dating until the late 1990s produced either contradictory or
inconclusive results.
Aid either worked, or it didn’t, according to this research. The paper
then highlights a
major shift in the literature that coincided with the release of the
World Bank’s
Assessing Aid: What Works, What Doesn’t and Why. Practically all
research published
since that report agrees with its general finding that aid works, to
the extent that in its
absence growth would be lower. One controversy may therefore have been
settled. Yet,
we show, the report has set-off an intense debate over the context in
which aid works.
That debate centres on whether the effectiveness of these inflows
depends on the policy
regime of recipient countries. Some possible avenues through which the
heat might be
taken out of this debate are considered.
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DP2003/03
Jeffery I. Round and Matthew Odedokun:
Aid
Effort and its Determinants
(PDF 238KB)
The paper empirically explores the factors that could have accounted
for the generally
declining aid effort (defined as the generosity ratio, or the share of
GDP given as aid) of
bilateral donors over the last three decades. Annual panel data over
1970-2000 period
for the 22 DAC members are used in a series of regressions. The
findings suggest the
existence of progressivity of aid in relation to donor income. There is
also evidence of
the economies of scale, in the sense that the share of aid in income
decreases with
growth in the size of donor country population. Domestic pro-poor
tendency also
appears to enhance donor generosity, and a positive ‘peer pressure’
effect is also
observed. In addition, the extent of military adventurism of the donor
is observed to
have enhanced aid effort, just as also the size of government. But no
discernible effect is
detected for fiscal balance. On the political front, a greater number
of checks and
balances in the political system as well as the existence of
polarization and
fractionalization within the government are found to have enhanced aid
effort while
fractionalization within the opposition has the opposite effect. On the
other hand, no
discernible and consistent effect of ideological orientation of
government is detected.
Finally, the movement in the aid effort over time is found to differ
between the G7 and
non-G7 donors.
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DP2003/05
Simon Feeny:
What
Determines Foreign Aid to Papua New Guinea? An Inter-temporal Model of
Aid
Allocation (PDF 283KB)
DP2003/09
Stefan Dercon and Pramila Krishnan:
Food
Aid and Informal Insurance
(PDF 345KB)
Households in developing countries use a variety of informal mechanisms
to cope with
risk, including mutual support and risk-sharing. These mechanisms
cannot avoid that
they remain vulnerable to shocks. Public programs in the form of food
aid distribution
and food-for-work programs are meant to protect vulnerable households
from
consumption and nutrition downturns by providing a safety net. In this
paper we look
into the extent to which food aid helps to smooth consumption by
reducing the impact
of negative shocks, taking into account informal risk-sharing
arrangements. Using panel
data from Ethiopia, we find that despite relatively poor targeting of
the food aid, the
programs contribute to better consumption outcomes, largely via
intra-village risk
sharing.
DP2003/11
George Mavrotas and Bazoumana Ouattara:
The
Composition of Aid and the Fiscal Sector in an Aid-Recipient Economy: A
Model
(PDF 184KB)
DP2003/15
George Mavrotas and Bazoumana Ouattara:
Aid
Disaggregation, Endogenous Aid and the Public Sector in Aid-Recipient
Economies:
Evidence from Côte d’Ivoire (PDF 252KB)
DP2003/17
Tony Addison, Mark McGillivray and Matthew Odedokun:
Donor
Funding of Multilateral Aid Agencies: Determining Factors and Revealed
Burden
Sharing
(PDF 247KB)
DP2003/21
Mark McGillivray:
Descriptive
and Prescriptive Analyses of Aid Allocation: Approaches, Issues and
Consequences
(PDF 264KB)
DP2003/26
Matthew Odedokun:
Analysis
of Deviations and Delays in Aid Disbursements
(PDF
280KB)
DP2003/33
Mark McGillivray and Bazoumana Ouattara:
Aid,
Debt Burden and Government Fiscal Behaviour: A New Model Applied to
Côte
d’Ivoire (PDF 191KB)
DP2003/49
Mark McGillivray:
Modelling
Aid Allocation: Issues, Approaches and Results
(PDF
240KB)
DP2003/71
Mark McGillivray:
Aid
Effectiveness and Selectivity: Integrating Multiple Objectives into Aid
Allocations
(PDF 165KB)
DP2003/82
John
Micklewright and Anna Wright:
Private
Donations for International Development
(PDF
229KB)
DP2003/85
George Mavrotas:
Which
Types of Aid Have the Most Impact?
(PDF
182KB)
DP2005/06
David Fielding and George Mavrotas:
The
Volatility of Aid
(PDF 173KB)
RP2005/61
Robert Osei, Oliver Morrissey, and Tim Lloyd: The
Fiscal Effects of Aid in Ghana (PDF 191KB)
RP2005/60
Karuna Gomanee, Sourafel Girma, and Oliver Morrissey:
Aid
and Growth in Sub-Saharan Africa: Accounting for Transmission Mechanisms
(PDF 137KB)
RP2005/58
Peter Quartey: Innovative
Ways of Making Aid Effective in Ghana: Tied Aid versus Direct Budgetary
Support (PDF 105KB)
RP2005/49
J. Andrew Grant: Diamonds,
Foreign Aid, and the Uncertain Prospects for Post-Conflict
Reconstruction in
Sierra Leone (PDF 106KB)
DP2006/02
George Mavrotas and Espen Villanger:
Multilateral
Aid Agencies and Strategic Donor Behaviour
(PDF
174KB)
DP2006/01
Mark McGillivray:
Aid
Allocation and Fragile States
(PDF 178KB)
RP2006/62
Marcia E. Greenberg and Elaine Zuckerman:
The
Gender Dimensions of Post-Conflict Reconstruction: The Challenges in
Development
Aid
(PDF 126KB)
RP2006/23
David Fielding, Mark McGillivray, and Sebastian Torres:
A
Wider Approach to Aid Effectiveness: Correlated Impacts on Health,
Wealth,
Fertility and Education
(PDF 180KB)
RP2006/07
Alessia Isopi and George Mavrotas:
Aid
Allocation and Aid Effectiveness: An Empirical Analysis
(PDF 301KB)
RP2006/06
Gil S. Epstein and Ira N. Gang:
Decentralizing
Aid with Interested Parties
(PDF 219KB)
RP2006/05
Jan-Erik Antipin and George Mavrotas:
On
the Empirics of Aid and Growth: A Fresh Look
(PDF
254KB)
RP2006/04
David Roodman:
Aid
Project Proliferation and Absorptive Capacity
(PDF
339KB)
RP2005/54
Mark McGillivray, Simon Feeny, Niels Hermes and Robert Lensink:
It
Works; It Doesn’t; It Can, But That Depends…: 50 Years of Controversy
over
the Macroeconomic Impact of Development Aid
(PDF
254KB)
RP2005/09
Tony Addison, George Mavrotas and Mark McGillivray:
Aid,
Debt Relief and New Sources of Finance for Meeting the Millennium
Development
Goals
(PDF 129KB)
RP2004/46
Renu Kohli:
The
Transition from Official Aid to Private Capital Flows. Implications for
a
Developing Country
(PDF 257KB)
RP2004/45
Anthony Clunies-Ross:
Imminent
Prospects for Additional Finance: What Might Be Done Now or Soon and
Under What
Conditions
(PDF 186KB)
RP2005/23
Tony Addison, George Mavrotas, and Mark McGillivray:
Development
Assistance and Development Finance: Evidence and Global Policy Agendas
(PDF 202KB)
RP2005/09
Tony Addison, George Mavrotas and Mark McGillivray:
Aid,
Debt Relief and New Sources of Finance for Meeting the Millennium
Development
Goals
(PDF 129KB)
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Related themes:
- Inequality/social exclusion
- Poverty
- Informal sector
- Microfinance
- Aid
- PRSP
Complete list of development themes |
Aid and Growth in
Fragile States
Mark McGillivray and Simon Feeny - 2008
The literature on aid has come a long way in recent years, and as a
result we now know much more about aid effectiveness than possibly ever
before. But significant gaps in knowledge remain. One such gap is the
effectiveness of aid in the so-called ‘fragile states’, countries with
critically low policy and institutional performance ratings. The
current paper addresses this void by examining possible links between
aid and economic growth in fragile states. It finds that: (i) growth
would have been 1.4 percentage points lower in highly fragile states in
the absence of aid to them, compared to 2.5 percentage points in other
countries; (ii) highly fragile states from a per capita income growth
perspective can only efficiently absorb approximately one-third of the
amounts of aid that other countries can, and; (iii) while from the same
perspective most fragile states are under-aided, to the extent that
they could efficiently absorb greater amounts of aid than they
currently receive, many of the highly fragile states are substantially
over-aided in this sense. The overall conclusion is that donors need to
look very closely at their aid to the sub-set of fragile states deemed
in this paper as highly fragile.
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Enhancing Effective
Utilization of Aid in Fragile States
Sanjeev Gupta - 2008
This paper explores the macroeconomic implications of aid flows in
countries with weak institutions. It argues that these countries should
take into account their overall macroeconomic position, their capacity
to absorb aid at the sectoral and subnational levels, and the strength
of their fiscal institutions in deciding how much and how fast to spend
aid. These considerations may warrant a gradual use of aid, except when
aid is provided for humanitarian purposes. There is some basis for
frontloading spending for countries emerging from a conflict, otherwise
fragile states should seek to smoothen their spending against the
background of aid volatility and uncertainty.
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Finance and Development
- December 2006
Making Aid
Work.
The end of the
cold war and progress toward a new aid architecture should make aid
more
effective.
By Mark Sundberg and Alan Gelb
Since 1960 nearly $650 billion in aid (in 2004 prices) has been
provided to sub-Saharan African (SSA) countries by the OECD Development
Assistance Committee (DAC) countries. And this number would be even
higher if contributions from emerging non-DAC donors, such as China,
India, and some of the Gulf states, were added to the total. Has all
this aid been gainfully used to promote sustainable growth and
development? This is difficult to answer because the links between
foreign aid and countries' development are complex. However, the likely
answer is, on the whole, "No." Historically, most aid has not been used
very well. Much of it was never intended for development to begin with,
and a large share went to war-torn and politically unstable countries
where development gains have subsequently been lost. However, there is
good reason to believe that substantive changes are taking place and
that "more and better aid" is now going to finance development
programs.
From Finance and Development - September 2005
Can more aid really make poverty history as aid
campaigners have argued?
This issue examines aid effectiveness and how to build
momentum toward the Millennium Development Goals after the G8 vowed to
double
aid to Africa. Includes assessments of use of aid in Ethiopia, Ghana,
Mozambique, Tanzania, and Uganda, as well as viewpoints from Burkina
Faso,
Tanzania, and the UK. Other articles look at next steps for reform in
China, and
how trading partners can help each other's growth. Profile of Jagdish
Bhagwati
and IMF Economic Counsellor Raghuram Rajan examines global financial
risk. Also
a look at governance and measures to combat corruption.
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US
Congressional Research Service - New York University
China's foreign aid activities in Africa,
Latin America, and Southeast Asia
T. Lum, H. Fisher,J. Gomez-Granger, and A. Leland - February 25, 2009
In the past several years, the
People’s Republic of China (PRC) has bolstered its diplomatic presence
and garnered international goodwill through its financing of
infrastructure and natural resource development projects, assistance in
the carrying out of such projects, and large economic investments in
many developing countries. This report examines China’s economic impact
in three regions — Africa, Latin America (Western Hemisphere), and
Southeast Asia — with an emphasis on bilateral foreign assistance.
China’s foreign aid is difficult to quantify. The PRC government does
not release or explain Chinese foreign aid statistics and much of PRC
foreign aid does not appear to be accounted for in the scholarly
literature on foreign aid. Some Chinese foreign assistance partially
resembles official development assistance (ODA) as defined by the
Organization for Economic Co-operation and Development (OECD), but in
other aspects shares characteristics of foreign investment. In terms of
development grants, the primary form of assistance provided by major
OECD countries, China is a relatively small source of global aid.
However, when China’s concessional loans and state-sponsored or
subsidized overseas investments are included, the PRC becomes a major
source of foreign aid .
Introduction
Measuring China’s Foreign Aid
China’s Foreign Aid Impact
Major Findings of the NYU Wagner School Study
Regional Highlights
Africa
Latin America
Southeast Asia
Figure 1. Reported PRC Aid by Year and
Region, 2003-2007
Figure 2. Reported PRC Foreign Aid by Funding Source
Table 1. Similarities and Differences between OECD-Defined “ Official
Development Assistance” (ODA) and “Chinese Aid ”
Table 2. Reported PRC Aid by Year, 2002-2007
Table 3. Reported PRC Aid by Funding Source and Region, 2002-2007
Table 4. Reported PRC Aid by Year and Region, 2002-2007
Table 5. Reported PRC Aid by Type and Region, 2002-2007
Table 6. Selected African Countries with Large Reported Aid and
Investment Projects, 2002-2007
Table 7. Selected Major PRC Financing and Aid-Related Economic Projects
in Africa
Table 8. Selected Latin American Countries with Large Reported Aid and
Investment Projects, 2002-2007
Table 9. Selected Major PRC Financing and Aid-Related Economic Projects
in Latin America
Table 10. Selected Southeast Asian Countries with Large Reported Aid
and Investment Projects, 2002-2007
Table 11. Selected Major PRC Financing and Aid-Related Economic
Projects in Southeast Asia
Table A-1. Selected PRC Aid and Investment Projects in 2008 (Announced
or Begun): Africa
Table A-2. Selected PRC Aid and Investment Projects in 2008 (Announced
or Begun): Latin America
Table A-3. Selected PRC Aid and Investment Projects in 2008 (Announced
or Begun): Southeast Asia
Appendix. Recent PRC Foreign Assistance and Investment Projects (2008)
Author Contact Information
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From Center for Global Development
The Chinese Aid System
By Carol Lancaster
June 2007
http://www.cgdev.org
China has become a major source of foreign aid in Asia, Latin America
and especially in Africa. Chinese aid has become a source of concern to
Western aid agencies - will Chinese aid discourage needed economic and
political reforms in African countries? Will it burden poor countries
with debt -a burden from which many have only just escaped with the
debt cancellation policies adopted by many aid agencies? This CGD Essay
explores questions about Chinese aid - how large it is and how fast it
is growing; how decisions are made on how much aid is provided each
year; which countries receive it and how much they get; how the aid is
managed within the Chinese government and how it is evaluated. The
Chinese are clearly set to play a major role in aid-giving worldwide,
and the aid-giving governments of Europe, North American and Japan
should expand lines of communication and, to the extent possible,
collaboration with the Chinese.
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