Measuring%20Aid%20Flows%3A%20A%20New%20Approach

Working Papers

Measuring Aid Flows: A New Approach


CODE: WP-387
AUTHOR(s): Chang, Charles C. , Fernández-Arias, Eduardo , Serven, Luis
PUBLISHED: December 1998
LANGUAGE: English
RELATED TOPICS: Macroeconomics
DOWNLOAD FILE IN: English

Abstract:

The debate on the effectiveness of foreign aid has intensified in recent years as aid has come under increasing budgetary pressures in donor countries. Whatever the merits of the opposing arguments, the fundamental issue arises of whether conventionally-used measures of aid such as ODA, which lump together grants and loans, accurately reflect true aid flows. This paper analyzes the methodological shortcomings of conventional aid measures, and proposes a new valuation approach that measures official aid flows as the sum of grants and the grant equivalents of official loans. This conceptually superior aid measure can diverge significantly from the conventional aggregates and provide a quite different view on major aid trends.

Hello, Welcome to the IDB!

Please join our mailing list by simply entering your email below.