Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid

When income is redistributed at national level, the minimum requirement is that the transfers should be progressive, that is flow from richer to poorer individuals. The same rule should hold at the global level: it is not sufficient that transfers be from a richer to a poorer country. But normally w...

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Main Author:	Milanovic, Branko
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Personal Income, Wealth, and Their Distributions D310 Foreign Aid F350 Taxation and Subsidies: Externalities Redistributive Effects Environmental Taxes and Subsidies H230
Online Access:	http://hdl.handle.net/10986/4771

id	okr-10986-4771
recordtype	oai_dc
spelling	okr-10986-47712021-04-23T14:02:19Z Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid Milanovic, Branko Personal Income, Wealth, and Their Distributions D310 Foreign Aid F350 Taxation and Subsidies: Externalities Redistributive Effects Environmental Taxes and Subsidies H230 When income is redistributed at national level, the minimum requirement is that the transfers should be progressive, that is flow from richer to poorer individuals. The same rule should hold at the global level: it is not sufficient that transfers be from a richer to a poorer country. But normally we do not know who are the taxpayers who finance international aid nor who are the beneficiaries of aid. We can nevertheless establish the rules such that the likelihood of a globally regressive transfer is minimized. This implies taking into account countries' national income distributions: penalizing countries with highly unequal distributions since there exists a non-trivial probability that the transfers may be received by people richer than rich countries' taxpayers. Some rules for changing eligibility criteria for aid are proposed. 2012-03-30T07:29:40Z 2012-03-30T07:29:40Z 2008 Journal Article Intervention: European Journal of Economics and Economic Policies 16130960 http://hdl.handle.net/10986/4771 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Personal Income, Wealth, and Their Distributions D310 Foreign Aid F350 Taxation and Subsidies: Externalities Redistributive Effects Environmental Taxes and Subsidies H230
spellingShingle	Personal Income, Wealth, and Their Distributions D310 Foreign Aid F350 Taxation and Subsidies: Externalities Redistributive Effects Environmental Taxes and Subsidies H230 Milanovic, Branko Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	When income is redistributed at national level, the minimum requirement is that the transfers should be progressive, that is flow from richer to poorer individuals. The same rule should hold at the global level: it is not sufficient that transfers be from a richer to a poorer country. But normally we do not know who are the taxpayers who finance international aid nor who are the beneficiaries of aid. We can nevertheless establish the rules such that the likelihood of a globally regressive transfer is minimized. This implies taking into account countries' national income distributions: penalizing countries with highly unequal distributions since there exists a non-trivial probability that the transfers may be received by people richer than rich countries' taxpayers. Some rules for changing eligibility criteria for aid are proposed.
format	Journal Article
author	Milanovic, Branko
author_facet	Milanovic, Branko
author_sort	Milanovic, Branko
title	Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid
title_short	Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid
title_full	Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid
title_fullStr	Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid
title_full_unstemmed	Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid
title_sort	rules of redistribution and foreign aid: a proposal for a change in the rules governing eligibility for foreign aid
publishDate	2012
url	http://hdl.handle.net/10986/4771
_version_	1764392697295011840

Rules of Redistribution and Foreign Aid: A Proposal for a Change in the Rules Governing Eligibility for Foreign Aid

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