An Equal-Opportunity Approach to the Allocation of International Air

John Roemer and Humberto Llavador

No 234, Working Papers from University of California, Davis, Department of Economics

Abstract: How should international aid be distributed? The most common view is according to some utilitarian formula: in order to maximize the average growth rate of aid recipients or the growth rate of income of the class of recipient countries. Recently, the World Bank [7] has published a study demonstrating the importance of good economic management, within a recipient country, in transforming aid into economic growth. We identify good economic management with e ort, and ask, how should aid be distributed to equalize opportunities [among recipient countries] for achieving growth, according to Roemer''s [5] theory of equal opportunity. In addition, we calculate how aid should be distributed according to a utilitarian view. Both the equal-opportunity and utilitarian recommendations are less compensatory than actual aid policy (they would give less to many African countries than present policy does). We discuss the results.

Pages: 26
Date: 2003-01-15
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Related works:
Journal Article: An equal-opportunity approach to the allocation of international aid (2001)
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