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On Poverty and the International Allocation of Development Aid

Victor Ginsburgh () and Juan Moreno-Ternero ()

No 18.15, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: We analyze the role of poverty levels on 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 assessing claims in different ways. Our results indicate that the current allocation of international development aid cannot be supported by any of those rules, which leads us to conclude that the allocation of ODA is not driven by eradicating world's poverty as a goal.

Keywords: Poverty; Development; Aid; Resource Allocation; Claims (search for similar items in EconPapers)
JEL-codes: D63 F35 I30 O10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-gth
Date: 2018-12
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