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On Poverty and the International Allocation of Development Aid

Victor Ginsburgh () and Juan Moreno-Ternero ()

No 2018-23, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: We analyze the role of poverty levels in the allocation of international development aid. We estimate “claims” for each recipient, based on the incidence and depth of poverty in its territory, and explore possible reallocations of the current (overall) official development assistance (ODA) based on those claims. We consider four allocation rules rooted in ancient sources: the Aristotelian proportional rule, two constrained egalitarian rules, inspired by Maimonides, and the Talmud rule. Each of them is grounded on different normative principles, which allows us to assess the recipients’ claims in different ways. Our results indicate that the current allocation of international development aid cannot be supported by any of those rules, which makes us conclude that the allocation of ODA is not truly driven by the goal of eradicating world’s poverty.

Keywords: Poverty; Development; Aid; Resource Allocation; Claims (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-gth
Date: 2018-09
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