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Is the Distribution of Foreign Aid MDG-sensitive?

Degol Hailu

Working Papers from United Nations, Department of Economics and Social Affairs

Abstract: This paper examines whether Official Development Assistance (ODA) is disproportionately allocated to countries that need to make the most progress on the Millennium Development Goals (MDGs). We expect MDG-sensitive distribution of foreign aid – or a good donor-recipient match – to be guided by the principles of the Global Partnership for Development. When we apply the MDG-sensitivity criteria for aid allocation, the results indicate that ODA allocation since the Millennium Declaration has become more MDG-sensitive – ODA is given to countries that need it most. While such trends in aid disbursements are commendable, total aid flows, however, fall short of promised levels.

Keywords: ODA; aid; MDGs; aid distribution (search for similar items in EconPapers)
JEL-codes: C43 D63 F35 O1 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2012-02
References: Add references at CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:une:wpaper:111

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