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We analyze the aid portfolio of various bilateral and multilateral donors, testing whether they have prioritised aid in line with the Millennium Development Goals (MDGs). In doing so, we combine sectorally disaggregated aid data with indicators reflecting the situation of recipient countries...
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measured by the World Bank's Country Policy and Institutional Assessment (CPIA). If the CPIA is replaced by the Kaufmann index … on institutional conditions in recipient countries, however, the policy orientation of aid becomes extremely weak. In … contrast to a recent paper by Dollar and Levin, our estimates do not suggest that multilateral aid is more poverty- and policy …
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