Criteria for Assessing the Case for Overseas Aid: A Note
Year: 2003
Type: article
Abstract: This note derives minimum appraisal criteria for foreign aid consistent with those used by donor governments for domestic spending, and discusses implications for the level, allocation and financing of aid programmes. One finding is that aid is only welfare‐enhancing when the recipient country's social time preference rate is higher than the donor's, as will normally be the case. This implies that endowment financing is inferior to funding aid from current income, though borrowing against future aid as proposed by the International Financing Facility can be worthwhile provided returns exceed the borrowing cost.
Source: Development Policy Review
Author: Mick Foster
Language: English
Subfield: Development
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1580434243