Aid Works Best in Vulnerable Countries

Patrick Guillaumont ()
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Patrick Guillaumont: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique

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Abstract: Aid effectiveness is linked much more to the economic vulnerability of countries than to their policies. Export volatility has a negative impact on growth, while aid tends to have the opposite effect. Aid increases stability and growth, while also making growth more pro-poor by protecting from poverty traps. Aid should increase more, balance directly productive and social sectors, and serve as insurance against external shocks and export volatility

Date: 2007
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Citations: View citations in EconPapers (6)

Published in Poverty in Focus, 2007, October, pp.14-15

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00192971

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