Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid

The authors 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 ex...

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Main Author: Strand, Jon
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4965
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spelling okr-10986-49652021-04-23T14:02:20Z Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid Strand, Jon Foreign Aid F350 International Linkages to Development Role of International Organizations O190 The authors 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. 2012-03-30T07:30:36Z 2012-03-30T07:30:36Z 2010 Journal Article Journal of International Development 09541748 http://hdl.handle.net/10986/4965 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 Foreign Aid F350
International Linkages to Development
Role of International Organizations O190
spellingShingle Foreign Aid F350
International Linkages to Development
Role of International Organizations O190
Strand, Jon
Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description The authors 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.
format Journal Article
author Strand, Jon
author_facet Strand, Jon
author_sort Strand, Jon
title Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid
title_short Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid
title_full Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid
title_fullStr Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid
title_full_unstemmed Decentralised and Cooperative Aid Provision with Short-Term and Long-Term Aid
title_sort decentralised and cooperative aid provision with short-term and long-term aid
publishDate 2012
url http://hdl.handle.net/10986/4965
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