The Macroeconomic Challenges of Scaling Up Aid to Africa

Yongzheng Yang, Robert Powell and Sanjeev Gupta

No 2005/179, IMF Working Papers from International Monetary Fund

Abstract: This paper surveys the economic literature on the scaling-up of aid to Africa. It provides a checklist of issues that need to be considered when preparing a long term macroeconomic projection for a country involving the assumption of a significant increase in aid. Such scaling-up scenarios are most likely to be developed in the context of a country's efforts to achieve the Millennium Development Goals (MDGs) with the support of the international donor community. The paper stresses that when preparing a scaling-up scenario it is critical to have a detailed understanding of the likely use of additional aid flows.

Keywords: WP; diminishing returns; crowding in; debt service; private sector; public spending; Aid; Exchange Rate; Monetary Policy; Fiscal Policy; Governance; nominal exchange rate; production function; exchange rate appreciation; revenue ratio; monetary management; Real exchange rates; Aid flows; Exchange rates; Africa (search for similar items in EconPapers)
Pages: 63
Date: 2005-09-01
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Citations: View citations in EconPapers (30)

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