Rethinking Foreign Aid for Fragile States

Aid Allocation and Fragile States

This paper summarises research on aid allocation and effectiveness, highlighting the current findings of recent research on aid allocation to fragile states. Fragile states are defined by the donor community as those with either critically poor policies or poorly performing institutions, or both. The paper examines the research findings in the broader context of research and analysis on how aid...

Rethinking Aid

This paper reviews the recent debate on the role of aid in providing finance, in changing policies in recipient countries, and in transmitting knowledge. It argues that where economic reforms are recent, as in much of Africa, donors can play an important signalling role. This potential remains untapped because aid allocations have been largely based on political considerations. Donors fear " ai...

Enhancing Effective Utilization of Aid in Fragile States

This paper explores the macroeconomic implications of aid flows in countries with weak institutions. It argues that these countries should take into account their overall macroeconomic position, their capacity to absorb aid at the sectoral and subnational levels, and the strength of their fiscal institutions in deciding how much and how fast to spend aid. These considerations may warrant a grad...

Rethinking Foreign Investment for Sustainable Development

Fragile States

Fragile States Fragile States T UNU-WIDER PROJECT ON “FRAGILITY AND development’’ began with the premise that dealing simultaneously with household vulnerability and state fragility is probably one of the most urgent development challenges of our time. Consequently, the project explored the dimensions of household vulnerability and state fragility in development. This research brief is about th...