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Evidence on Changes In Aid Allocation Criteria

2009, The World Bank …

AI-generated Abstract

This article examines the evolution of aid allocation criteria among 22 donors, using data spanning from 1970 to 2004 across 147 countries. Findings indicate a marked shift towards selecting countries based on poverty and institutional quality, particularly after 1989. The analysis reveals that while overall selectivity has increased, significant differences still exist among donors, suggesting the need for further reforms to enhance aid allocation effectiveness.