"In many developing countries, achieving the Millennium Development Goals (MDGs) by 2015 will require significant increases in expenditures on social services and in foreign assistance. It will also require careful planning of the sector allocation and sequencing of public spending. Especially...

"The actual distribution of world income across countries is extremely unequal, much higher than the within country inequality faced by most countries. The question studied in this paper is: How do international policies on aid, trade, and factor movements affect the international distribution...

"Much of the academic debate on the effectiveness of foreign aid is centered on the relationship between aid and growth. Different aid-growth studies find conflicting results: aid promotes growth everywhere; aid has a zero or negative impact on growth everywhere; or the effect of aid on growth...