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Aid allocation and poverty reduction

✍ Scribed by Paul Collier; David Dollar


Book ID
117097955
Publisher
Elsevier Science
Year
2002
Tongue
English
Weight
143 KB
Volume
46
Category
Article
ISSN
0014-2921

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Assessing Aid argues that aid should be reallocated in favour of poor countries with good policies. This argument is based on a model in which poverty depends on growth, and growth on aid, the impact of aid being higher in countries with good policies. So-called `poverty-ecient' aid allocations are

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## Abstract If development assistance targeted at specific sectors is not used as intended, aid is said to be fungible. While fungible aid is in general perceived as being less effective than aid used as specified, this has not been formally tested. This paper attempts at filling this gap and hence