Skip to main content
×
×
Home

Aid Allocation and Targeted Development in an Increasingly Connected World

  • Sarah Blodgett Bermeo
Abstract

Aid donors pursue a strategy of targeted development with regard to recipient states. The determinants of aid allocation have shifted significantly. Industrialized states are increasingly unable to insulate themselves from spillovers caused by underdevelopment abroad. Donors attempt to use aid to decrease these spillovers, targeting developing countries where the effects on the donor are anticipated to be large. Once a recipient is chosen, concern for recipient government capacity guides the composition of aid. Empirical analysis of aid allocation from 1973 to 2012 demonstrates that, while explanations based on security and economic ties to the donor explain allocation well in the Cold War, the post-2001 period is best understood by incorporating a role for targeted development. This framework helps synthesize various findings in the aid allocation literature and has important implications for studying aid effectiveness.

  • View HTML
    • Send article to Kindle

      To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

      Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

      Find out more about the Kindle Personal Document Service.

      Aid Allocation and Targeted Development in an Increasingly Connected World
      Available formats
      ×
      Send article to Dropbox

      To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

      Aid Allocation and Targeted Development in an Increasingly Connected World
      Available formats
      ×
      Send article to Google Drive

      To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

      Aid Allocation and Targeted Development in an Increasingly Connected World
      Available formats
      ×
Copyright
References
Hide All
Akramov, Kamiljon T. 2014. Foreign Aid Allocation, Governance, and Economic Growth. Philadelphia, PA: University of Pennsylvania Press.
Alesina, Alberto, and Dollar, David. 2000. Who Gives Foreign Aid to Whom and Why? Journal of Economic Growth 5:3363.
Alesina, Alberto, and Weder, Beatrice. 2002. Do Corrupt Governments Receive Less Foreign Aid? American Economic Review 92 (4):1126–37.
Bailey, Michael, Strezhnev, Anton, and Voeten, Erik. 2017. Estimating Dynamic State Preferences from UN Voting Data. Journal of Conflict Resolution 61 (2):430–56.
Bearce, David H., and Tirone, Daniel C.. 2010. Foreign Aid Effectiveness and the Strategic Goals of Donor Governments. Journal of Politics 72 (3):837–51.
Bermeo, Sarah Blodgett. 2010. Development and Strategy: Aid Allocation in an Interdependent World. Manuscript, Duke University. Available at <http://fds.duke.edu/db/attachment/2430>.
Bermeo, Sarah Blodgett. 2016. Aid Is Not Oil: Donor Utility, Heterogeneous Aid, and the Aid-Democratization Relationship. International Organization 70 (1):132.
Bermeo, Sarah Blodgett, and Leblang, David. 2015. Migration and Foreign Aid. International Organization 69 (3):627–57.
Berthelemy, Jean-Claude. 2006. Bilateral Donors’ Interest vs. Recipients’ Development Motives in Aid Allocation: Do All Donors Behave the Same? Review of Development Economics 10 (2):179–94.
Berthelemy, Jean-Claude, and Tichit, Ariane. 2004. Bilateral Donors Aid Allocation Decisions: A Three-Dimensional Panel Analysis. Inernational Review of Economics and Finance 13 (3):253–74.
Blair, Tony. 2006. A Global Alliance for Global Values [Technical Report] . London, UK: The Foreign Policy Center.
Boschini, Anne, and Olofsgard, Anders. 2007. Foreign Aid: An Instrument for Fighting Communism? Journal of Development Studies 43 (4):622–48.
Brautigam, Deborah A., and Knack, Stephen. 2004. Foreign Aid, Institutions, and Governance in Sub-Saharan Africa. Economic Development and Cultural Change 52 (2):255–85.
Brazys, Samuel. 2016. Aid and Governance: Negative Returns? European Journal of Development Research 28 (2):294313.
Bueno de Mesquita, Bruce, and Smith, Alastair. 2007. Foreign Aid and Policy Concessions. Journal of Conflict Resolution 51 (2):251–84.
Bueno de Mesquita, Bruce, and Smith, Alastair. 2009. A Political Economy of Aid. International Organization 63 (2):309–40.
Bueno de Mesquita, Bruce, and Smith, Alastair. 2015. Competition and Collaboration in Aid-for-Policy Deals. Manuscript, New York University.
Bueno de Mesquita, Bruce, Smith, Alastair, Siverson, Randolph M., and Morrow, James D.. 2003. The Logic of Political Survival. Cambridge, MA: MIT Press.
Burnside, Craig, and Dollar, David. 2000. Aid, Policies, and Growth. American Economic Review 90 (4):847–68.
Buzan, Barry. 2006. Will the “Global War on Terrorism” Be the New Cold War? International Affairs 82 (6):1101–18.
Carter, David B., and Stone, Randall W.. 2015. Democracy and Multilateralism: The Case of Vote Buying in the UN General Assembly. International Organization 69 (1):133.
Claessens, Stijn, Cassimon, Danny, and Van Campenhout, Bjorn. 2009. Evidence on Changes in Aid Allocation Criteria. The World Bank Economic Review 23 (2):185208.
Clemens, Michael, Radelet, Steven, Bhavnani, Rikhil, and Bazzi, Samuel. 2012. Counting Chickens When They Hatch: Timing and the Effects of Aid on Growth. The Economic Journal 122 (561):590617.
Clist, Paul. 2011. Twenty-five Years of Aid Allocation Practice: Whither Selectivity? World Development 39 (10):1724–34.
Collier, Paul, and Dollar, David. 2002. Aid Allocation and Poverty Reduction. European Economic Review 46 (8):14751500.
De la Croix, David, and Delavalladey, Clara. 2014. Why Corrupt Governments May Receive More Foreign Aid. Oxford Economic Papers 66 (1):5166.
Dietrich, Simone. 2013. Bypass or Engage? Explaining Donor Delivery Tactics in Aid Allocation. International Studies Quarterly 57 (4):698712.
Dollar, David, and Levin, Victoria. 2006. The Increasing Selectivity of Foreign Aid, 1984–2003. World Development 34 (12):2034–46.
Dreher, Axel, Sturm, Jan-Egbert, and Vreeland, James. 2009. Development Aid and International Politics: Does Membership on the UN Security Council Influence World Bank Decisions? Journal of Development Economics 88 (1):118.
Dunning, Thad. 2004. Conditioning the Effects of Aid: Cold War Politics, Donor Credibility, and Democracy in Africa. International Organization 58 (2):409423.
Easterly, William. 2007. Are Aid Agencies Improving? Economic Policy 22 (52):633–78.
Easterly, William, Levine, Ross, and Roodman, David. 2004. Aid, Policies, and Growth: Comment. American Economic Review 94 (3):774–79.
Easterly, William, and Pfutze, Tobias. 2008. Where Does the Money Go? Best and Worst Practices in Foreign Aid. Journal of Economic Perspectives 22 (2):2952.
Easterly, William, and Williamson, Claudia R.. 2011. Rhetoric versus Reality: The Best and Worst of Aid Agency Practices. World Development 39 (11):1930–49.
Fleck, Robert K. and Kilby, Christopher. 2010. Changing Aid Regimes? US Foreign Aid from the Cold War to the War on Terror. Journal of Development Economics 91 (2):185–97.
Friedman, Milton. 1958. Foreign Economic Aid: Means and Objectives. The Yale Review 47 (4):500–16.
Girod, Desha M., Krasner, Stephen D., and Stoner-Weiss, Kathryn. 2009. Governance and Foreign Assistance: The Imperfect Translation of Ideas into Outcomes. In Promoting Democracy and the Rule of Law: American and European Strategies, edited by Magen, Amichai, Risse, Thomas, and McFaul, Michael, 6192. New York: Palgrave Macmillan.
Gleditsch, Nils Petter, Wallensteen, Peter, Eriksson, Mikael, Sollenberg, Margareta, and Strand, Havard. 2002. Armed Conflict 1946–2001: A New Dataset. Journal of Peace Research 39 (5):615–37.
Greene, William. 2004. Fixed Effects and Bias Due to the Incidental Parameters Problem in the Tobit Model. Econometric Reviews 23 (2):125–47.
Greene, William. 2010. Testing Hypotheses about Interaction Terms in Nonlinear Models. Economics Letters 107 (2):291–96.
Kaufmann, Daniel, Kraay, Aart, and Mastruzzi, Massimo. 2010. Governance Matters V: Governance Indicators for 1996–2005. World Bank Policy Research Working Paper 5430. Available at <https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-5430>.
Keohane, Robert O., and Nye, Joseph S.. 2000. Globalization: What's New? What's Not? (And So What?). Foreign Policy 118:104–19.
Kilby, Christopher. 2013. An Empirical Assessment of Informal Influence in the World Bank. Economic Development and Cultural Change 61 (2):431–64.
Kilby, Christopher, and Dreher, Axel. 2010. The Impact of Aid on Growth Revisited: Do Donor Motives Matter? Economics Letters 107 (3):338–40.
Kuziemko, Ilyana, and Werker, Eric. 2006. How Much Is a Seat on the Security Council Worth? Foreign Aid and Bribery at the United Nations. Journal of Political Economy 114 (5):905–30.
Lancaster, Carol. 2007. Foreign Aid: Diplomacy, Development, Domestic Politics. Chicago, IL: University of Chicago Press.
Lancaster, Carol. 2008. George Bush's Foreign Aid: Transformation or Chaos? Washington, DC: Center for Global Development.
Lumsdaine, David Halloran. 1993. Moral Vision in International Politics: The Foreign Aid Regime, 1949–1989. Princeton, NJ: Princeton University Press.
Maizels, Alfred, and Nissanke, Machiko K.. 1984. Motivations for Aid to Developing Countries. World Development 12 (9):879900.
Marshall, Monty G., and Jaggers, Keith. 2013. Polity IV Project: Political Regime Characteristics and Transitions, 1800–2013. Dataset Users’ Manual. Center for Systemic Peace. College Park: University of Maryland. Available at <http://www.systemicpeace.org/polityproject.html>.
McGuire, Carl. 1952. Point Four and the National Power of the United States. The American Journal of Economics and Sociology 11 (3):343–56.
McKinlay, R.D., and Little, R.. 1977. A Foreign Policy Model of US Bilateral Aid Allocation. World Politics 30 (1):5886.
McKinlay, R.D., and Little, R.. 1978. A Foreign Policy Model of the Distribution of British Bilateral Aid, 1960–70. British Journal of Political Science 8 (3):313–31.
Moss, Todd, Roodman, David, and Standley, Scott. 2005. The Global War on Terror and US Development Assistance: USAID Allocation by Country. Center for Global Development Working Paper 62.
Neumayer, Eric. 2003. The Pattern of Aid Giving: The Impact of Good Governance on Development Assistance. New York: Routledge.
Nordtveit, Ingvild. 2014. Partner Country Ownership: Does Better Governance and Commitment to Development Attract General Budget Support? University of Bergen Working Papers in Economics.
Radelet, Steven. 2003. Bush and Foreign Aid. Foreign Affairs 82 (5):104–17.
Schraeder, Peter J., Hook, Steven W., and Taylor, Bruce. 1998. Clarifying the Foreign Aid Puzzle: A Comparison of American, Japanese, French, and Swedish Aid Flows. World Politics 50 (2):294323.
Stone, Randall W. 2010. Buying Influence: Development Aid between the Cold War and the War on Terror. Manuscript, University of Rochester, available at <http://www.sas.rochester.edu/psc/stone/working_papers/buying_influence.pdf>.
Svensson, Jakob. 2000. Foreign Aid and Rent-Seeking. Journal of International Economics 51 (2):437–61.
Vreeland, James Raymond, and Dreher, Axel. 2014. The Political Economy of the United Nations Security Council: Money and Influence. New York: Cambridge University Press.
Winters, Matthew S., and Martinez, Gina. 2015. The Role of Governance in Determining Foreign Aid Flow Composition. World Development 66:516–31.
Woods, Ngaire. 2005. The Shifting Politics of Foreign Aid. International Affairs 81 (2):393409.
Wright, Joseph. 2009. How Foreign Aid Can Foster Democratization in Authoritarian Regimes. American Journal of Political Science 53 (3):552–71.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

International Organization
  • ISSN: 0020-8183
  • EISSN: 1531-5088
  • URL: /core/journals/international-organization
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×
Type Description Title
UNKNOWN
Supplementary materials

Bermeo supplementary material
Bermeo supplementary material 1

 Unknown (19.0 MB)
19.0 MB

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed