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Aid allocation to fragile states: Absorptive capacity constraints

✍ Scribed by Simon Feeny; Mark McGillivray


Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
122 KB
Volume
21
Category
Article
ISSN
0954-1748

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✦ Synopsis


Abstract

The international donor community has grave concerns about the effectiveness of aid to countries it classifies as ‘fragile states’. The impact of aid on growth and poverty reduction and the ability to efficiently absorb additional inflows is thought to be significantly lower in these countries compared to other recipients. This paper examines this issue and suggests that a while a number of fragile states can efficiently absorb more aid than they have received, a number receive far more aid than they can efficiently absorb from a perspective based purely on per capita income growth. Policy recommendations are provided. Copyright © 2008 John Wiley & Sons, Ltd.