Many donors have come to view selectivity in aid allocation-particularly towards countries with good governance-as the key for improving aid effectiveness. This position draws support from research according to which the success of policy reforms depends exclusively on domestic political economy...

This paper argues that the future of composite indices of development such as the Human Development Index depends on how successfully they become operational and this is more likely to be possible at the country level for a variety of reasons. With this in mind the paper proposes a method and a...

Is the World Bank’s Development Policy Lending likely to enhance ownership and have greater effectiveness than structural adjustment? We specify a dynamic common agency model in which a government committed to reform faces domestic opposition from interest groups. The dynamic specification,...

This paper puts forward a framework for choosing between alternative macroeconomic models. It is shown that a three-sector model with importables, exportables, and nontraded goods can be specified so as to encompass both the Keynesian one-sector imperfect substitutes model and the two-sector...