Aid, poverty reduction and the 'new conditionality'

P Mosley, J Hudson, A Verschoor

Research output: Contribution to journalArticle

141 Citations (Scopus)

Abstract

The paper examines the effect of aid on poverty, rather than on economic growth. We devise a 'pro-poor (public) expenditure index', and present evidence that, together with inequality and corruption, this is a key determinant of the aid's poverty leverage. After presenting empirical evidence which suggests a positive leverage of aid donors on pro-poor expenditure, we argue for the development of conditionality in a new form, which gives greater flexibility to donors in punishing slippage on previous commitments, and keys aid disbursements to performance in respect of policy variables which governments can influence in a pro-poor direction.
Original languageEnglish
Pages (from-to)F217-F243
JournalThe Economic journal
Volume114
Issue number496
Publication statusPublished - 2004

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    Mosley, P., Hudson, J., & Verschoor, A. (2004). Aid, poverty reduction and the 'new conditionality'. The Economic journal, 114(496), F217-F243.