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Pity the Finance Minister: Issues in Managing a Substantial Scaling-Up of Aid Flows

Author/Editor: Heller, Peter S.
Authorized for Distribution: September 1, 2005
Electronic Access: Free Full Text (PDF file size is 474KB)
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: Substantially scaling up of aid flows will require development partners to address many issues, including the impact of higher aid flows on: the competitiveness of aid recipients; the management of fiscal and monetary policy; the delivery of public services; behavioral incentives; and the rate of growth of the economy. Other issues will include the appropriate sequencing of aid-financed investments; balancing alternative expenditure priorities; the implications for fiscal and budget sustainability; and exit strategies from donor funding. Donors will need to ensure greater long-term predictability and reduced short-term volatility of aid. The international financial institutions can play a critical role in helping countries address these scaling-up issues.
 
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Series: Working Paper No. 05/180
Subject(s): Development assistance | Fiscal policy | Financial institutions | Aid flows
Author's keyword(s): Foreign aid | fiscal policy | Dutch Disease | Aid donors
 
English  
    Published:   September 1, 2005        
    ISBN/ISSN:   1934-7073   Format:   Paper
    Stock No:   WPIEA2005180   Pages:   37
    Price:   US$15.00 (Academic Rate: US$15.00 )
       
     
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