What Is Effective Aid? How Would Donors Allocate It?

There are significant weaknesses in some of the traditional justifications for assuming that aid will foster development. This paper looks at what the cross-country aid effectiveness literature and World Bank Operations Evaluation Department reviews have suggested about effective aid, first in terms...

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Main Author:	Kenny, Charles
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING ADEQUATE NUTRITION AID AID AGENCIES AID ALLOCATION AID DEPENDENCY AID FINANCING AID FLOWS AIDS PREVENTION BILATERAL AID CAPACITY BUILDING CAPITAL FLOWS CIVIL WAR CONDOMS DEMOCRACY DEMOCRATIC INSTITUTIONS DEVELOPING COUNTRIES DEVELOPMENT DEVELOPMENT EFFORTS DEVELOPMENT GOALS DEVELOPMENT IMPACT DEVELOPMENT ISSUES DEVELOPMENT POLICY DEVELOPMENT PROJECTS DEVELOPMENT PROSPECTS DISABILITY DISCOUNT RATE DISEASES DONOR AGENCIES ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RATE OF RETURN EDUCATION FINANCIAL CONSTRAINTS FINANCIAL MARKETS GAPS GDP GDP PER CAPITA GLOBAL ENVIRONMENT GNP GOOD GOVERNANCE GOVERNMENT SUPPORT HEALTH HEALTH STATUS HUMAN DEVELOPMENT INCOME INFANT INFANT MORTALITY INFECTION RATES INFLATION INSTITUTION BUILDING INSTITUTIONAL CAPACITY INSTITUTIONAL DEVELOPMENT INTEREST RATE INTEREST RATES INTERVENTIONS LACK OF KNOWLEDGE LEARNING LIFE EXPECTANCY LOAN COMMITMENTS LOCAL GOVERNMENTS LOCAL POPULATION MACROECONOMIC MANAGEMENT MALARIA MIDDLE INCOME COUNTRIES MILLENNIUM DEVELOPMENT GOALS NATIONAL GOVERNMENTS NATIONAL LEVEL NUMBER OF PEOPLE OVERSEAS DEVELOPMENT ASSISTANCE POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL SUPPORT POOR PEOPLE POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRODUCTIVITY PROGRESS PUBLIC EXPENDITURES PUBLIC GOOD PUBLIC HEALTH QUALITY ASSURANCE QUALITY OF LIFE RECIPIENT COUNTRIES RECIPIENT COUNTRY REVENUE MOBILIZATION RICHER COUNTRIES RISK TAKING SAVINGS SAVINGS RATES SCARCE RESOURCES SERVICE DELIVERY SEXUAL HEALTH SOCIAL SECTORS STRUCTURAL ADJUSTMENT SUSTAINABILITY SUSTAINABLE DEVELOPMENT TAX COLLECTION TECHNICAL ASSISTANCE TECHNICAL ASSISTANCE LOANS TECHNICAL ASSISTANCE PROJECTS TRANSPORT VACCINES VICTIMS WAGES WAR
Online Access:	http://documents.worldbank.org/curated/en/2006/09/7047663/effective-aid-would-donors-allocate http://hdl.handle.net/10986/9296

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spelling	okr-10986-92962021-04-23T14:02:41Z What Is Effective Aid? How Would Donors Allocate It? Kenny, Charles ACCOUNTING ADEQUATE NUTRITION AID AID AGENCIES AID ALLOCATION AID DEPENDENCY AID FINANCING AID FLOWS AIDS PREVENTION BILATERAL AID CAPACITY BUILDING CAPITAL FLOWS CIVIL WAR CONDOMS DEMOCRACY DEMOCRATIC INSTITUTIONS DEVELOPING COUNTRIES DEVELOPMENT DEVELOPMENT EFFORTS DEVELOPMENT GOALS DEVELOPMENT IMPACT DEVELOPMENT ISSUES DEVELOPMENT POLICY DEVELOPMENT PROJECTS DEVELOPMENT PROSPECTS DISABILITY DISCOUNT RATE DISEASES DONOR AGENCIES ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RATE OF RETURN EDUCATION FINANCIAL CONSTRAINTS FINANCIAL MARKETS GAPS GDP GDP PER CAPITA GLOBAL ENVIRONMENT GNP GOOD GOVERNANCE GOVERNMENT SUPPORT HEALTH HEALTH STATUS HUMAN DEVELOPMENT INCOME INFANT INFANT MORTALITY INFECTION RATES INFLATION INSTITUTION BUILDING INSTITUTIONAL CAPACITY INSTITUTIONAL DEVELOPMENT INTEREST RATE INTEREST RATES INTERVENTIONS LACK OF KNOWLEDGE LEARNING LIFE EXPECTANCY LOAN COMMITMENTS LOCAL GOVERNMENTS LOCAL POPULATION MACROECONOMIC MANAGEMENT MALARIA MIDDLE INCOME COUNTRIES MILLENNIUM DEVELOPMENT GOALS NATIONAL GOVERNMENTS NATIONAL LEVEL NUMBER OF PEOPLE OVERSEAS DEVELOPMENT ASSISTANCE POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL SUPPORT POOR PEOPLE POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRODUCTIVITY PROGRESS PUBLIC EXPENDITURES PUBLIC GOOD PUBLIC HEALTH QUALITY ASSURANCE QUALITY OF LIFE RECIPIENT COUNTRIES RECIPIENT COUNTRY REVENUE MOBILIZATION RICHER COUNTRIES RISK TAKING SAVINGS SAVINGS RATES SCARCE RESOURCES SERVICE DELIVERY SEXUAL HEALTH SOCIAL SECTORS STRUCTURAL ADJUSTMENT SUSTAINABILITY SUSTAINABLE DEVELOPMENT TAX COLLECTION TECHNICAL ASSISTANCE TECHNICAL ASSISTANCE LOANS TECHNICAL ASSISTANCE PROJECTS TRANSPORT VACCINES VICTIMS WAGES WAR There are significant weaknesses in some of the traditional justifications for assuming that aid will foster development. This paper looks at what the cross-country aid effectiveness literature and World Bank Operations Evaluation Department reviews have suggested about effective aid, first in terms of promoting income growth, and then for promoting other goals. This review forms the basis for a discussion of recommendations to improve aid effectiveness and a discussion of effective aid allocation. Given the multiple potential objectives for aid, there is no one right answer. However, it appears that there are a number of reforms to aid practices and distribution that might help to deliver a more significant return to aid resources. We should provide aid where institutions are already strong, where they can be strengthened with the help of donor resources, or where they can be bypassed with limited damage to existing institutional capacity. The importance of institutions to aid outcomes, as well as the fungibility of aid flows, suggests that programmatic aid should be expanded in countries with strong institutions, while project aid should be supported based on its ability to transfer knowledge and test new practices and support global public good provision rather than (merely) as a tool of financial resource transfer. The importance of institutions also suggests that we should be cautious in our expectations regarding the results of increased aid flows. 2012-06-26T21:06:07Z 2012-06-26T21:06:07Z 2006-09 http://documents.worldbank.org/curated/en/2006/09/7047663/effective-aid-would-donors-allocate http://hdl.handle.net/10986/9296 English en_US Policy Research Working Paper; No. 4005 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING ADEQUATE NUTRITION AID AID AGENCIES AID ALLOCATION AID DEPENDENCY AID FINANCING AID FLOWS AIDS PREVENTION BILATERAL AID CAPACITY BUILDING CAPITAL FLOWS CIVIL WAR CONDOMS DEMOCRACY DEMOCRATIC INSTITUTIONS DEVELOPING COUNTRIES DEVELOPMENT DEVELOPMENT EFFORTS DEVELOPMENT GOALS DEVELOPMENT IMPACT DEVELOPMENT ISSUES DEVELOPMENT POLICY DEVELOPMENT PROJECTS DEVELOPMENT PROSPECTS DISABILITY DISCOUNT RATE DISEASES DONOR AGENCIES ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RATE OF RETURN EDUCATION FINANCIAL CONSTRAINTS FINANCIAL MARKETS GAPS GDP GDP PER CAPITA GLOBAL ENVIRONMENT GNP GOOD GOVERNANCE GOVERNMENT SUPPORT HEALTH HEALTH STATUS HUMAN DEVELOPMENT INCOME INFANT INFANT MORTALITY INFECTION RATES INFLATION INSTITUTION BUILDING INSTITUTIONAL CAPACITY INSTITUTIONAL DEVELOPMENT INTEREST RATE INTEREST RATES INTERVENTIONS LACK OF KNOWLEDGE LEARNING LIFE EXPECTANCY LOAN COMMITMENTS LOCAL GOVERNMENTS LOCAL POPULATION MACROECONOMIC MANAGEMENT MALARIA MIDDLE INCOME COUNTRIES MILLENNIUM DEVELOPMENT GOALS NATIONAL GOVERNMENTS NATIONAL LEVEL NUMBER OF PEOPLE OVERSEAS DEVELOPMENT ASSISTANCE POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL SUPPORT POOR PEOPLE POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRODUCTIVITY PROGRESS PUBLIC EXPENDITURES PUBLIC GOOD PUBLIC HEALTH QUALITY ASSURANCE QUALITY OF LIFE RECIPIENT COUNTRIES RECIPIENT COUNTRY REVENUE MOBILIZATION RICHER COUNTRIES RISK TAKING SAVINGS SAVINGS RATES SCARCE RESOURCES SERVICE DELIVERY SEXUAL HEALTH SOCIAL SECTORS STRUCTURAL ADJUSTMENT SUSTAINABILITY SUSTAINABLE DEVELOPMENT TAX COLLECTION TECHNICAL ASSISTANCE TECHNICAL ASSISTANCE LOANS TECHNICAL ASSISTANCE PROJECTS TRANSPORT VACCINES VICTIMS WAGES WAR
spellingShingle	ACCOUNTING ADEQUATE NUTRITION AID AID AGENCIES AID ALLOCATION AID DEPENDENCY AID FINANCING AID FLOWS AIDS PREVENTION BILATERAL AID CAPACITY BUILDING CAPITAL FLOWS CIVIL WAR CONDOMS DEMOCRACY DEMOCRATIC INSTITUTIONS DEVELOPING COUNTRIES DEVELOPMENT DEVELOPMENT EFFORTS DEVELOPMENT GOALS DEVELOPMENT IMPACT DEVELOPMENT ISSUES DEVELOPMENT POLICY DEVELOPMENT PROJECTS DEVELOPMENT PROSPECTS DISABILITY DISCOUNT RATE DISEASES DONOR AGENCIES ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RATE OF RETURN EDUCATION FINANCIAL CONSTRAINTS FINANCIAL MARKETS GAPS GDP GDP PER CAPITA GLOBAL ENVIRONMENT GNP GOOD GOVERNANCE GOVERNMENT SUPPORT HEALTH HEALTH STATUS HUMAN DEVELOPMENT INCOME INFANT INFANT MORTALITY INFECTION RATES INFLATION INSTITUTION BUILDING INSTITUTIONAL CAPACITY INSTITUTIONAL DEVELOPMENT INTEREST RATE INTEREST RATES INTERVENTIONS LACK OF KNOWLEDGE LEARNING LIFE EXPECTANCY LOAN COMMITMENTS LOCAL GOVERNMENTS LOCAL POPULATION MACROECONOMIC MANAGEMENT MALARIA MIDDLE INCOME COUNTRIES MILLENNIUM DEVELOPMENT GOALS NATIONAL GOVERNMENTS NATIONAL LEVEL NUMBER OF PEOPLE OVERSEAS DEVELOPMENT ASSISTANCE POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL SUPPORT POOR PEOPLE POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRODUCTIVITY PROGRESS PUBLIC EXPENDITURES PUBLIC GOOD PUBLIC HEALTH QUALITY ASSURANCE QUALITY OF LIFE RECIPIENT COUNTRIES RECIPIENT COUNTRY REVENUE MOBILIZATION RICHER COUNTRIES RISK TAKING SAVINGS SAVINGS RATES SCARCE RESOURCES SERVICE DELIVERY SEXUAL HEALTH SOCIAL SECTORS STRUCTURAL ADJUSTMENT SUSTAINABILITY SUSTAINABLE DEVELOPMENT TAX COLLECTION TECHNICAL ASSISTANCE TECHNICAL ASSISTANCE LOANS TECHNICAL ASSISTANCE PROJECTS TRANSPORT VACCINES VICTIMS WAGES WAR Kenny, Charles What Is Effective Aid? How Would Donors Allocate It?
relation	Policy Research Working Paper; No. 4005
description	There are significant weaknesses in some of the traditional justifications for assuming that aid will foster development. This paper looks at what the cross-country aid effectiveness literature and World Bank Operations Evaluation Department reviews have suggested about effective aid, first in terms of promoting income growth, and then for promoting other goals. This review forms the basis for a discussion of recommendations to improve aid effectiveness and a discussion of effective aid allocation. Given the multiple potential objectives for aid, there is no one right answer. However, it appears that there are a number of reforms to aid practices and distribution that might help to deliver a more significant return to aid resources. We should provide aid where institutions are already strong, where they can be strengthened with the help of donor resources, or where they can be bypassed with limited damage to existing institutional capacity. The importance of institutions to aid outcomes, as well as the fungibility of aid flows, suggests that programmatic aid should be expanded in countries with strong institutions, while project aid should be supported based on its ability to transfer knowledge and test new practices and support global public good provision rather than (merely) as a tool of financial resource transfer. The importance of institutions also suggests that we should be cautious in our expectations regarding the results of increased aid flows.
format	Publications & Research :: Policy Research Working Paper
author	Kenny, Charles
author_facet	Kenny, Charles
author_sort	Kenny, Charles
title	What Is Effective Aid? How Would Donors Allocate It?
title_short	What Is Effective Aid? How Would Donors Allocate It?
title_full	What Is Effective Aid? How Would Donors Allocate It?
title_fullStr	What Is Effective Aid? How Would Donors Allocate It?
title_full_unstemmed	What Is Effective Aid? How Would Donors Allocate It?
title_sort	what is effective aid? how would donors allocate it?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/09/7047663/effective-aid-would-donors-allocate http://hdl.handle.net/10986/9296
_version_	1764406564649697280

What Is Effective Aid? How Would Donors Allocate It?

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