Assessing Aid: What Works, What Doesn't and Why by World Bank

By World Bank

Assessing reduction determines that the effectiveness of relief isn't really made up our minds via the quantity bought yet really the institutional and coverage surroundings into which it's authorised. It examines how improvement tips could be better at lowering worldwide poverty and provides 5 major ideas for making relief more suitable: focusing on monetary reduction to negative nations with strong guidelines and robust monetary administration; offering policy-based reduction to verified reformers; utilizing less complicated tools to move assets to international locations with sound administration; focusing initiatives on growing and transmitting wisdom and means; and rethinking the inner incentives of relief firms.

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Extra resources for Assessing Aid: What Works, What Doesn't and Why

Sample text

Generally, a doubling of per capita income leads to a 33 percent reduction in aid. But the behavior of bilateral donors varies widely (Ehrenpreis 1997). Half of all Swedish aid has gone to the poorest 12 percent of countries (weighted by population); of all bilateral aid, only 20 percent went to these countries. Another study also found that Canadian, Dutch, and Nordic assistance is sharply targeted to poor countries (Alesina and Dollar 1998). The relationship between aid per capita and income is stronger for multilateral aid than for bilateral and stronger still for the World BankesInternational Development Association (IDA) facility, which is part of multilateral aid.

MONEY MATTERS-IN A GOOD POLICY ENVIRONMENT Foreign aid is targeted to poor countries-but imperfectly. 9). Generally, a doubling of per capita income leads to a 33 percent reduction in aid. But the behavior of bilateral donors varies widely (Ehrenpreis 1997). Half of all Swedish aid has gone to the poorest 12 percent of countries (weighted by population); of all bilateral aid, only 20 percent went to these countries. Another study also found that Canadian, Dutch, and Nordic assistance is sharply targeted to poor countries (Alesina and Dollar 1998).

If Ethiopia'stotal output were divided evenly among households, everyone would be poor. Growth (an increase in per capita income) is clearly required to solve poverty and its problems: malnutrition, poor health, and lack of education and basic social services. Overall, developing countries have made tremendous progress: more babies are surviving, more food is on the table, more children are in school, and there are fewer deaths from easily preventable diseases. There has been more global improvement in life expectancy in the past 40 years than in the previous 4,000 (World Bank 1993).

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