Click here for search results
Measuring aid flows : a new approach, Volume 1
 
Author:Chang, Charles C.; Fernandez-Arias, Eduardo; Serven, Luis; Collection Title:Policy, Research working paper ; no. WPS 2050
Date Stored:2000/02/24Document Date:1999/02/28
Document Type:Policy Research Working PaperSubTopics:Payment Systems & Infrastructure; Economic Theory & Research; Banks & Banking Reform; Strategic Debt Management; Economic Adjustment and Lending
Language:EnglishMajor Sector:(Historic)Multisector
Report Number:WPS2050Sub Sectors:Non-Sector Specific
Volume No:1Related Dataset:Effective Development Assistance (dataset from Measuring Aid Flows);

Summary: Debate about the effectiveness of foreign aid has intensified in recent years, as budgetary pressures on aid have increased in donor countries. Whatever the merits of opposing arguments, the question is: do conventional measures of aid (such as OECD's Net ODA), which lump together grants and loans, accurately reflect true aid flows? The authors analyze the methodological shortcomings of conventional measures of aid and propose a new approach, which measures official aid flows as the sum of grants and the grant-equivalents of official loans (in a new aggregate they call "Effective Development Assistance," or EDA). They show how results using this conceptually superior measure may differ significantly from conventional aggregates, providing a quite different view on major aid trends. They implement their approach empirically using data on some 40,000 official loans from the World Bank's DRS database--virtually all of the official loans to 133 developing countries from 1975 to 1995. The numerical results underscore several points: 1) The conventional approach has led to systematic overestimates of the concessionality of official loans. This overestimate has increased significantly since the mid-1980s. Conventional methods show a rising trend; the new method shows the opposite. 2) Net ODA increasingly overstates the true aid content of official flows, although the divergence between the two approaches is somewhat muted by the rising relative importance of grants over loans in total official flows.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 43 pagesOfficial version*3.01 (approx.)
TextText version**
How To Order
Light-Weight Documents
Lighter (less MB) documents which may or may not be the final, official version
File TypeDescriptionFile Size (mb)
PDF 39 pagesWPS20500.23

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/QVLG05OHN0