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Title:Do donors target aid in line with the Millennium Development Goals? A sector perspective of aid allocation PDF Logo
Authors:Thiele, Rainer
Nunnenkamp, Peter
Dreher, Axel
Issue Date:2007
Series/Report no.:WIDER Discussion Papers, World Institute for Development Economics Research 2007/04
Abstract:We analyse the aid portfolio of various bilateral and multilateral donors, testing whether they have prioritized aid in line with the Millennium Development Goals (MDGs). Employing Tobit models that combine sectorally disaggregated aid data with various indicators reflecting the situation of recipient countries with regard to the MDGs, we show that donors differ in the extent to which their sectoral aid allocation is conducive to achieving major MDGs. Some MDGs, notably the fight against HIV/AIDS, have shaped the allocation of aid. However, with respect to other MDGs such as primary education, there is a considerable gap between donor rhetoric and actual aid allocation. This invites the conclusion that the current focus on substantially increasing aid is unlikely to have the desired effects unless the targeting of aid is improved.
Subjects:aid allocation
Millennium Development Goals
sector-specific aid
JEL:O19
O11
F35
ISBN:978-92-9230-009-8
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
WIDER Discussion Papers, United Nations University (UNU)

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