Background paper : "Aid effectiveness and selectivity : integrating multiple objectives into aid allocation"

McGillivray, Mark 2003, Background paper : "Aid effectiveness and selectivity : integrating multiple objectives into aid allocation", DAC journal, vol. 4, no. 3, pp. 27-40.

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Title Background paper : "Aid effectiveness and selectivity : integrating multiple objectives into aid allocation"
Author(s) McGillivray, Mark
Journal name DAC journal
Volume number 4
Issue number 3
Start page 27
End page 40
Publisher OECD
Place of publication Paris, France
Publication date 2003
ISSN 1563-3152
Summary Research on development aid has largely focused on the effectiveness of these transfers in promoting growth or on their allocation among developing countries. Rarely if ever did these research areas intersect, in that studies seeking to explain observed or prescribe optimal inter-country aid allocations did not take into account effectiveness issues and vice versa. Collier and Dollar (C-D, 2002), in a move broadly consistent with the IDA’s long-standing approach to its country allocation system, changed this state of affairs with their “aid selectivity” approach to inter-country aid allocation. C-D, building on the empirical work of Burnside and Dollar (B-D, 1997, 2000), which concluded that the effectiveness of aid in promoting growth depended on the policy regimes of recipient countries, derived “poverty efficient” inter-recipient aid allocations. According to the prescriptive C-D selectivity approach, optimal aid allocation favours countries with high levels of poverty, low per capita incomes and sound policy regimes. Such allocations are considered poverty efficient by maximising the number of people pulled out of poverty. Countries with unsound policies regimes receive less aid in the C-D selectivity approach as these regimes lessen aid’s impact on growth and thus poverty reduction.
Notes Background Paper prepared for the Joint OECD DAC/Development Centre Experts’ Seminar, 10 March 2003
Language eng
Field of Research 169999 Studies in Human Society not elsewhere classified
Socio Economic Objective 970116 Expanding Knowledge through Studies of Human Society
HERDC Research category C1.1 Refereed article in a scholarly journal
Copyright notice ©2003, OECD
Persistent URL http://hdl.handle.net/10536/DRO/DU:30028858

Document type: Journal Article
Collection: Alfred Deakin Research Institute
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