Poverty Reduction and Aid Policy

No . 03 / 06 Poverty Reduction and Aid Policy

This paper deals with the effectiveness of several alternative models of aid allocation in terms of poverty reduction. We use a model that admits the presence of diminishing returns to aid in the output and poverty functions. We shall discuss the impact of aid on poverty in a single country, showing that conditional aid to improve policies has a deeper impact than the other alternatives of aid ...

Aid, Growth, and Poverty Reduction

Foreign Aid Fungibility, Growth, and Poverty Reduction

This paper tries to assess to which extent fungibility in sectoral foreign development assistance is something donors should be concerned about. This is done in three steps. First, country specific estimates of the degree of fungibility are obtained. These are then incorporated in a well established empirical aid-growth equation. Third, arguing that the aid-growth relation may not be the releva...

Asset Poverty: Scope for Rural Poverty Reduction through Policy Changes

REDUCTION THROUGH POLICY CHANGES This chapter deals with various strategies to improve the asset holdings of the rural poor. In most cases, if the poor get a bigger share of asset control or benefits, efficiency and economic growth also improve. For many types of asset, reducing inequality between rural and urban areas slows down outmigration to the cities, and increases rural farm and non-farm...

More Policy Production than Poverty Reduction

ABSTRACf A wealth of solutions to poverty have been proposed, with little understanding of the forces required to turn a sound idea into an "implementable" program. A system approach is suggested to overcome this deficiency. This implies analyzing the effects of antipoverty measures on other elements of a society and a polity and the "feedback" effects of changes in these other elements on the ...