Reforming Performance-Based Aid Allocation Practice

doi:10.1016/j.worlddev.2015.05.006

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Reforming Performance-Based Aid Allocation Practice

2017-02-01

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Mark McGillivray *

Thi Kim Cuong Pham

DOI：10.1016/j.worlddev.2015.05.006

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Abstract

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Performance-based aid allocation systems are used by a number of multilateral agencies to allocate aid among developing countries. A number of bilateral agencies also allocate aid on the basis of the performance of recipients, albeit in a less systematic way than these multilateral agencies. This paper points to a number of fundamental problems associated with performance-based aid allocation systems, including a problematic balancing of need and performance criteria, being reductionist with respect to the drivers of effective aid and not being sufficiently nuanced with respect to performance by ignoring a lack of human capital and economic vulnerability in recipient countries. Together with providing a theoretical framework that articulates these issues, this paper introduces and outlines the papers that follow in this Special Section. (C) 2015 Elsevier Ltd. All rights reserved.

Keywords:

performance

aid allocation

human capital

vulnerability

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