There have been substantial improvements in development outcomes in Afghanistan since 2001, particularly in terms of improved access to basic services such as water, sanitation, and electricity, and increased human development in education and health. However, some gains are now being eroded due...

This paper shows that the increased policy-selectivity of aid allocations observed in recent years provides recipient countries an incentive to improve policies. The paper estimates that a change in the World Banks Country Policy and Institutional Assessment policy index from 1.5 to 2 for a...