Aid, poverty reduction and the 'new conditionality'


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

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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.


Item Type Articles
CreatorsMosley, P., Hudson, J. and Verschoor, A.
DepartmentsFaculty of Humanities & Social Sciences > Social & Policy Sciences
Faculty of Humanities & Social Sciences > Economics
ID Code10018
Additional InformationID number: ISI:000222469300003


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