Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81000
Authors: 
Bourguignon, François
Platteau, Jean-Philippe
Year of Publication: 
2012
Series/Report no.: 
WIDER Working Paper 2012/54
Abstract: 
This paper addresses the issue of the impact of aid supply on aid effectiveness. We proceed in two steps. First, we review research works that deal with the problem of governance in donor-recipient relationships and are susceptible of highlighting effects of aggregate aid availability. Second, we provide a conceptual framework that explicitly incorporates a trade-off between considerations of needs and governance. We examine the impact of aid supply on the manner in which a donor agency allocates the available money between countries differing in terms of both needs and domestic governance. The central conclusion is that a donor's utility function that embodies the need-governance trade-off and the associated optimization mechanism yield a meaningful rule to guide inter-country allocation of aid resources.
Subjects: 
aid effectiveness
aid allocation
governance
elite capture
monitoring
JEL: 
O11
O17
O19
O43
ISBN: 
978-92-9230-517-8
Document Type: 
Working Paper

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