1.

Record Nr.

UNINA9910786481803321

Autore

Annen Kurt

Titolo

Donor Competition for Aid Impact, and Aid Fragmentation / / Kurt Annen, Luc Moers

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2012

ISBN

1-4755-2021-2

1-4755-3924-X

Descrizione fisica

1 online resource (38 p.)

Collana

IMF Working Papers

Altri autori (Persone)

MoersLuc

Soggetti

Economic assistance

Flow of funds

Budgeting

Exports and Imports

Finance: General

Social Services and Welfare

Poverty and Homelessness

Analysis of Collective Decision-Making: General

Foreign Aid

International Fiscal Issues

International Public Goods

National Budget

Budget Systems

Welfare, Well-Being, and Poverty: General

General Financial Markets: General (includes Measurement and Data)

Government Policy

Provision and Effects of Welfare Program

International economics

Budgeting & financial management

Poverty & precarity

Finance

Social welfare & social services

Foreign aid

Budget planning and preparation

Poverty

Competition

Poverty reduction

Public financial management (PFM)

Financial markets



International relief

Budget

China, People's Republic of

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Cover; Contents; 1 Introduction; 2 Donor Coordination in Practice: Fragmentation; Figures; 1 Number of Recipient Countries and Global Aid Budget Shares; 2 Global Aid Herfindahl Index; 3 Background Literature; 4 Model; 4.1 Donors Maximize Net Aid Impact; 4.2 Donors Maximize Relative Net Aid Impact; 3 Best-Response Functions with Identical Donors; 4.3 Introducing Fixed Costs; 4 Best-Response Functions with Non-Identical Donors; 4.4 Introducing More Recipients and More Donors; 5 Empirical Evidence; Tables; 1 Larger Donors vs. Smaller Donors; 5 Herfindahl Index and Relative Donor Size

2 Donor Ranking in Aid Selectivity3 Donor Selectivity and Herfindahl Index; 6 Conclusion; References; Appendix A; Proof of Proposition 1; Description of Best-Response Functions; Proof of Proposition 4; Appendix B; Table 4: Donor Selectivity and MLD; Table 5: Donor Selectivity and Theil Index

Sommario/riassunto

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.