The End of Poverty Alleviation? Effects of Shifting Global Wealth on Aid Allocation and Graduation from Foreign Aid Eligibility

114 Pages Posted: 16 Mar 2013

See all articles by Lukas Schlogl

Lukas Schlogl

University of Vienna - Department of Political Science

Date Written: March 14, 2013

Abstract

What happens to foreign aid when developing countries get richer?

In this paper, I first show that, since the mid-1990s, many recipients of official development assistance have been experiencing sustained economic progress and that they are projected to do so. I proceed with presenting historical evidence as well as estimates of the quantitative implications of increasing GDP per capita for aid allocation. Special focus is given to the under-researched phenomenon of “aid graduation”, i.e. the point where developing countries cease to be eligible for public aid giving in accordance with OECD standards. Finally, I examine broader politico-economic implications of graduation for foreign aid as a redistributive institution and for our understanding of aid.

Keywords: Official Development Assistance, Aid Allocation, Development Policy, Emerging Markets, Economic Development, Redistribution

JEL Classification: F35, F37, F55, O19

Suggested Citation

Schlogl, Lukas, The End of Poverty Alleviation? Effects of Shifting Global Wealth on Aid Allocation and Graduation from Foreign Aid Eligibility (March 14, 2013). Available at SSRN: https://ssrn.com/abstract=2233375 or http://dx.doi.org/10.2139/ssrn.2233375

Lukas Schlogl (Contact Author)

University of Vienna - Department of Political Science ( email )

Vienna
Austria

HOME PAGE: http://https://politikwissenschaft.univie.ac.at/en/about-us/staff/schloegl/

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