Donor Competition for Aid Impact, and Aid Fragmentation

Author/creator Annen, Kurt Author
Other author Moers, Luc Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description21 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors' budgets. the paper presents empirical evidence consistent with theoretical results. These imply that, short of ending donors' maximization of relative aid impact, agreements to better coordinate aid allocations are not implementable. Moreover, since policies to increase donor competition in terms of aid effectiveness risk reinforcing relativeness, they may well backfire, as any such reinforcement increases aid fragmentation.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781475559576
ISBN1475559577 (E-Book) Active Record
Stock number00013468