The allocation of aid among developing countries: A multi-donor analysis using a per capita aid index

This paper seeks to measure the relative aid giving performance of aid donors in terms of the inter-recipient distribution of their aid. "Performance" is taken to be the extent to which a donor bases its aid allocation on the relative needs of recipient countries. Donor performance is measured by an income-weighted per capita aid index, formulated in this paper. This index was calculated using the per capita allocations to a sample of 85 recipient countries in the years 1969-84. The performance of 17 DAC members, plus that of a number of multilateral agencies, and that of the DAC and these agencies combined is identified. Results indicate that the performance of four countries - Belgium, Finland, Denmark and Norway - was generally superior to that of other donors. © 1989.