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In a globalizing world, the world's wealthiest nations have found it increasingly difficult to insulate themselves from the residual impacts associated with underdevelopment abroad. Many of the ills associated with, and exacerbated by, underdevelopment cannot be confined within national borders. In Targeted Development, Sarah Blodgett Bermeo shows how wealthy states have responded to this problem by transforming the very nature of development policy. Instead of funding development projects that enhance human well-being in the most general sense, they now pursue a "targeted" strategy: advocating development abroad when and where it serves their own interests. In an era in which the ideology of "globalism" is in decline, targeted development represents a fundamental shift toward a realpolitik approach to foreign aid. Devising development plans that ultimately protect and benefit industrialized donor states now drives the agenda, while crafting effective solutions for deep-seated problems in the neediest nations is increasingly an afterthought.
The success or failure of economic assistance programs is a shared responsibility of recipient countries and donors. The negative attitude about aid prevalent today underscores a perception the aid has failed. Critics often blame corrupt regimes, weak governments, or poor economic policies. However, the poor track record of aid is also due to donors' inability to allocate limited funds effectively and poor coordination of their aid efforts. Declining aid budgets have led to fundamental questioning of foreign aid's allocation and utility, while the apparent ineffectiveness of aid has shrunk aid budgets and turned public opinion against providing it. This edited collection containing pieces written by leading development specialists evaluates these emerging questions of allocation and efficiency. Development economists, policy makers, and development specialists will benefit from reading this work. Chapters examine the optimal and intertemporal allocation of aid, the role and accountability of NGOs in allocation, the importance of untying (a new perspective on low levels of aid), and links between the allocation pattern of donors. Additional chapters deal with the impact of aid on economic growth, democracy, wage inequality between skilled and unskilled labor, and the role of governance and institutional capacity in aid effectiveness. An effective balance between theoretical and empirical models is offered to better illustrate the issues involved.
Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.
It would be fair to say that foreign aid today is one of the most important factors in international relations and in the national economy of many countries – as well as one of the most researched fields in economics. Although much has been written on the subject of foreign aid, this book contributes by taking stock of knowledge in the field, with chapters summarizing long-standing debates as well as the latest advances. Several contributions provide new analytical insights or empirical evidence on different aspects of aid, including how aid may be linked to trade and the motives for aid giving. As a whole, the book demonstrates how researchers have dealt with increasingly complex issues over time – both theoretical and empirical – on the allocation, impact, and efficacy of aid, with aid policies placed at the center of the discussion. In addition to students, academics, researchers, and policymakers involved in development economics and foreign aid, this Handbook will appeal to all those interested in development issues and international policies.
This paper models the resource implications of debt relief provided to low-income countries (LICs). Obtaining debt relief does not necessarily lead to individual aid-dependent countries receiving more overall resources from the donor community. Preliminary cross-section estimates suggest that debt relief provided to low-income countries in the period 1996 2000 neither crowded out other non-debt relief-related aid flows to the debtors concerned nor created significant extra net resources for those countries. While it is too early to fully assess the resource implications of the enhanced HIPC Initiative, this paper provides a possible approach to such an evaluation.
Features top contributors including Graham Bird, Oliver Morrissey and Tony Killick Previous books on this topic have sold well almost without exception A huge range of countries are studied with equal weight given to Asia, Latin America and Africa
Foreign aid has been an area of active scholarly investigation since the end of the Second World War, but particularly since the early 1950s when a large number of the erstwhile colonies became independent. Few areas of public policy involving the developed and developing countries have aroused more passion and ideological debate than foreign aid. In spite of the massive amount of research in the field, there is still not enough work in two areas: the first involves the mechanisms through which aid influences the economies of the donor and the recipient countries; and the second, country-specific assessments of the effectiveness of foreign aid. Foreign Aid: New Perspectives is aimed at making a contribution in these two areas. The contents of this volume are divided into four parts. Part I deals with some theoretical aspects of foreign aid, while the second part analyzes some general policy aspects. Part III turns to the donor experience and includes one paper on the Danish experience. The last part considers the recipient experience and consists of five case studies.
This book addresses several gaps in knowledge of aid allocation and effectiveness and provides new analytical insights. Topics covered include the interface between aid allocation and perceptions of aid effectiveness, the year-on-year volatility of aid and evaluation of the country-level impacts of aid.