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Title:Halving poverty by doubling aid : how well founded is the optimism of the World Bank? PDF Logo
Authors:Langhammer, Rolf J.
Issue Date:2002
Series/Report no.:Kieler Arbeitspapiere 1116
Abstract:The article criticizes the World Bank as overy optimistic concerning its ability to raise the effectiveness of aid by concentrating aid on countries with "good" policies. It is shown that aid flows to the main recipient regions yielded the highest correlation to growth when their magnitudes shrank. It is argued that more aid can impair the quality of domestic policies in the recipients (endogeneity problem). The paper instead pleads for a shift of aid policies from country-oriented to issue-oriented aid. An international endowment fund under supranational law should help to finance such issues.
Subjects:development aid
economic growth
poverty reduction
aid effectiveness
policy orientation
‘Dutch Disease’ effects of aid
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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