Reforming performance-based aid allocation practice
McGillivray, Mark and Pham, Thi Kim Cuong 2017, Reforming performance-based aid allocation practice, World development, vol. 90, pp. 1-5, doi: 10.1016/j.worlddev.2015.05.006.
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Reforming performance-based aid allocation practice
Performance-based aid allocation systems are used by a number of multilateral agencies to allocate aid among developing countries. A number of bilateral agencies also allocate aid on the basis of the performance of recipients, albeit in a less systematic way than these multilateral agencies. This paper points to a number of fundamental problems associated with performance-based aid allocation systems, including a problematic balancing of need and performance criteria, being reductionist with respect to the drivers of effective aid and not being sufficiently nuanced with respect to performance by ignoring a lack of human capital and economic vulnerability in recipient countries. Together with providing a theoretical framework that articulates these issues, this paper introduces and outlines the papers that follow in this Special Section.
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