EconPapers    
Economics at your fingertips  
 

Crushed Aid: Fragmentation in Sectoral Aid

Emmanuel Frot () and Javier Santiso ()

No 6, SITE Working Paper Series from Stockholm School of Economics, Stockholm Institute of Transition Economics

Abstract: This paper measures and compares fragmentation in aid sectors. Past studies focused on aggregate country data but a sector analysis provides a better picture of fragmentation. We start by counting the number of aid projects in the developing world and find that, in 2007, more than 90 000 projects were running simultaneously. Project proliferation is on a steep upward trend and will certainly be reinforced by the emergence of new donors. Developing countries with the largest numbers of aid projects have more than 2 000 in a single year. In parallel to this boom of aid projects, there has been a major shift towards social sectors and, as a consequence, these are the most fragmented. We quantify fragmentation in each aid sector for donors and recipients and identify which exhibit the highest fragmentation. While fragmentation is usually seen as an issue when it is excessive, we also show that some countries suffer from too little fragmentation. An original contribution of this paper is to develop a monopoly index that identifies countries where a donor enjoys monopoly power. Finally, we characterise countries with high fragmentation levels. Countries that are poor, democratic and have a large population get more fragmented aid. However, this is only because poor and democratic countries attract more donors. Once we control for the number of donors in a country-sector, democratic countries do not appear different from non-democratic ones in any sector and poor countries actually have a slightly less fragmented aid allocation.

Keywords: Aid; Fragmentation (search for similar items in EconPapers)
JEL-codes: F35 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2009-12-02
New Economics Papers: this item is included in nep-dev and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26) Track citations by RSS feed

Downloads: (external link)
http://swopec.hhs.se/hasite/papers/hasite0006.pdf (application/pdf)

Related works:
Working Paper: Crushed Aid: Fragmentation in Sectoral Aid (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:hasite:0006

Access Statistics for this paper

More papers in SITE Working Paper Series from Stockholm School of Economics, Stockholm Institute of Transition Economics Stockholm Institute of Transition Economics, Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Dominick Nilsson ().

 
Page updated 2021-10-18
Handle: RePEc:hhs:hasite:0006