The Macroeconomic Challenges of Scaling Up Aid to Africa

63 Pages Posted: 3 Mar 2006

See all articles by Sanjeev Gupta

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Robert Powell

University of California, Berkeley

Yongzheng Yang

International Monetary Fund (IMF) - African Department

Date Written: September 2005

Abstract

This paper surveys the economic literature on the scaling-up of aid to Africa. It provides a checklist of issues that need to be considered when preparing a long term macroeconomic projection for a country involving the assumption of a significant increase in aid. Such scaling-up scenarios are most likely to be developed in the context of a country's efforts to achieve the Millennium Development Goals (MDGs) with the support of the international donor community. The paper stresses that when preparing a scaling-up scenario it is critical to have a detailed understanding of the likely use of additional aid flows.

Keywords: Aid, Exchange Rate, Monetary Policy, Fiscal Policy, Governance

JEL Classification: F35, F43, I30, O40

Suggested Citation

Gupta, Sanjeev and Powell, Robert and Yang, Yongzheng, The Macroeconomic Challenges of Scaling Up Aid to Africa (September 2005). IMF Working Paper, Vol. , pp. 1-63, 2005. Available at SSRN: https://ssrn.com/abstract=888048

Sanjeev Gupta (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Robert Powell

University of California, Berkeley ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

Yongzheng Yang

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States
202-623-4339 (Phone)
202-623-4237 (Fax)

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