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Performance-based allocation (PBA) of foreign aid: still alive?

Patrick Guillaumont () and Laurent Wagner
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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, FERDI - Fondation pour les Etudes et Recherches sur le Développement International

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Abstract: Performance-based allocation is a principle for the allocation of development assistance between countries, governed by a simple formula for several decades and considered as accepted wisdom, at least at the multilateral level. An official of one of the major donors once even said: "the PBA is a global public good". In this chapter we explain first what is the meaning of this common principle, now declined in various formulas, second how it has generated major misunderstandings, undermining its legitimacy, third why the exceptions progressively brought to the principle have limited its impact, and finally which options are opened for the revision, the replacement, or the extension of the PBA.

Keywords: development economics; development assistance (search for similar items in EconPapers)
Date: 2015-09
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Published in 2015

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