In this paper, we explore the relationship between foreign aid fungibility and aggregate welfare. Using panel data from 35 low-income and lower-middle-income countries, we first check the presence of sectoral aid fungibility in our sample and find evidence for it. We then use econometric methods...

Success with direct support to the poor is highly dependent on the particular context in which it is implemented. Cash Transfer Programmes, handing over funds directly to poor households - typically on certain conditions, such as school attendance of the children - have the potential of creating...

This paper recalls the history of proposed “innovative” mechanisms by which governments could strengthen financial cooperation for development. Such proposals sought more predictable and assured financial flows to facilitate recipient country programming, while also substantially adding to...