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Targeting aid to the needy and deserving : nothing but promises?

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dc.creator Nunnenkamp, Peter
dc.creator Thiele, Rainer
dc.date 2006
dc.date.accessioned 2013-10-16T06:13:45Z
dc.date.available 2013-10-16T06:13:45Z
dc.date.issued 2013-10-16
dc.identifier The world economy 0378-5920 29 2006 9 1177-1201
dc.identifier http://hdl.handle.net/10419/3875
dc.identifier ppn:517516225
dc.identifier ppn:517516225
dc.identifier RePEc:zbw:ifwkie:3875
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/3875
dc.description By reallocating aid to where it is needed most and where a productive use is most likely, donors could help alleviate poverty in developing countries. The rhetoric of donors suggests that this insight has increasingly shaped the allocation of aid. We assess the poverty and policy orientation of bilateral and multilateral aid in different ways. In addition to presenting stylized facts based on bivariate correlations, we apply a Tobit model that captures both altruistic and selfish donor motives. We find little evidence supporting the view that the targeting of aid has improved significantly. Most donors provide higher aid to relatively poor countries, but so far the fight against poverty has not resulted in a stronger focus on the most needy recipients. The estimation results reveal that the policy orientation of aid critically depends on how local conditions are measured. Applying the widely used Kaufmann index on the quality of institutions, almost all donors failed to direct aid predominantly to where local conditions were conducive to a productive use of inflows. The response of donors to changing institutional and policy conditions in recipient countries turns out to be fairly weak. In particular, we reject the proposition that multilateral aid is more targeted than bilateral aid in terms of rewarding poor countries with better policies and institutions.
dc.language eng
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject F35
dc.subject ddc:330
dc.subject bilateral aid , multilateral aid , fight against poverty , economic policy assessment , quality of institutions
dc.subject Entwicklungshilfe
dc.subject Entwicklungskooperation
dc.subject Armutspolitik
dc.subject Wirtschaftspolitische Wirkungsanalyse
dc.subject Entwicklungsländer
dc.title Targeting aid to the needy and deserving : nothing but promises?
dc.type doc-type:article


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