Are Donor Countries Giving More or Less Aid?

29 Pages Posted: 3 Mar 2006

See all articles by Sanjeev Gupta

Sanjeev Gupta

International Monetary Fund (IMF) - Fiscal Affairs Department

Catherine A. Pattillo

International Monetary Fund (IMF) - Research Division

Smita Wagh

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2006

Abstract

The volume of foreign aid has increased during the last four decades, albeit with interruptions in certain years. Over time, the major recipients have changed: while the share of aid to Asia has diminished since the 1980s, that destined for sub-Saharan Africa has grown. There is some evidence that, since the late 1990s, debt relief has assumed a larger share of the increased aid flows to sub-Saharan Africa. The share of technical cooperation - a component of aid that is viewed as being driven by donors - has risen. More recently, there has been an increased emphasis on providing budget support to recipient governments, especially in the form of debt relief. Donor harmonization, national ownership of development plans, and sound policies on the part of the recipients are crucial for the aid to be effective in reducing poverty.

Keywords: Foreign Aid, Donor Countries, Budget Support, Technical Cooperation

JEL Classification: F02, F35

Suggested Citation

Gupta, Sanjeev and Pattillo, Catherine and Wagh, Smita, Are Donor Countries Giving More or Less Aid? (January 2006). IMF Working Paper No. 06/1, Available at SSRN: https://ssrn.com/abstract=888146

Sanjeev Gupta (Contact Author)

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

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

Catherine Pattillo

International Monetary Fund (IMF) - Research Division ( email )

700 19th Street NW
Washington, DC 20431
United States

Smita Wagh

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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