This publication continues efforts by the OECD’s Development Assistance Committee (DAC) to develop tools and instruments for conflict prevention and for improving security and stability in the long term. The guidance underlines the positive role that the integrated reform of a country’s...

The literature on aid and growth has not found a convincing instrumental variable to identify the causal effects of aid. This paper exploits an instrumental variable based on the fact that since 1987, eligibility for aid from the International Development Association (IDA) has been based partly...

These Guidelines provide ways for donor governments to honour their commitment to conflict prevention as an integral part of the quest to reduce poverty. They cover key issues such as: security, development and dealing with small arms; regional co-operation; peace processes, justice and...

We examine the effects of aid on growth--in cross-sectional and panel data--after correcting for the bias that aid typically goes to poorer countries, or to countries after poor performance. Even after thiscorrection, we find little robust evidence of a positive (or negative) relationship...

Critics of foreign aid programs have long argued that poverty reflects government failure. In this paper I analyze the effectiveness of foreign aid programs to gain insights into political regimes in aid recipient countries. My analytical framework shows how three stylized political/economic...

Aggregate shocks that move output and inflation in opposite directions create a tradeoff between output and inflation variability, forcing central bankers to make a choice. Differences in the degree of accommodation of shocks lead to disparate variability outcomes, revealing national central...