Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/2785 
Year of Publication: 
2002
Series/Report no.: 
Kiel Working Paper No. 1116
Publisher: 
Kiel Institute for World Economics (IfW), Kiel
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: 
economic growth
poverty reduction
aid effectiveness
policy orientation
‘Dutch Disease’ effects of aid
development aid
JEL: 
O4
O2
Document Type: 
Working Paper

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