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Title:Enhancing effective utilization of aid in fragile states PDF Logo
Authors:Gupta, Sanjeev
Issue Date:2008
Series/Report no.:Research Paper, UNU-WIDER, United Nations University (UNU) 2008/07
Abstract:This paper explores the macroeconomic implications of aid flows in countries with weak institutions. It argues that these countries should take into account their overall macroeconomic position, their capacity to absorb aid at the sectoral and subnational levels, and the strength of their fiscal institutions in deciding how much and how fast to spend aid. These considerations may warrant a gradual use of aid, except when aid is provided for humanitarian purposes. There is some basis for frontloading spending for countries emerging from a conflict, otherwise fragile states should seek to smoothen their spending against the background of aid volatility and uncertainty.
Subjects:aid absorption
aid flows
institutions
post-conflict
JEL:F35
O19
O11
ISBN:978-92-9230-049-4
Document Type:Working Paper
Appears in Collections:WIDER Research Papers, United Nations University (UNU)

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