Statistics on the distribution of ODA loans show that the local government sector is the smallest direct recipient of this funding source. While it has been observed that the amount of ODA grants and the number of ODA grant projects have been declining over the years, several factors could...

We analyse the aid portfolio of various bilateral and multilateral donors, testing whether they have prioritized aid in line with the Millennium Development Goals (MDGs). Employing Tobit models that combine sectorally disaggregated aid data with various indicators reflecting the situation of...

This working paper explores the reasons commonly identified for the rise of political and radical Islam throughout the Muslim world. Besides Anti-American sentiment which is often attributed to U.S. support for Israel as well as American backing for hated repressive regimes, especially in the...

The Paris declaration of 2005 on aid effectiveness is now part of the international consensus. It holds that increased use of budget support combined with decentralised aid administration will lead to transaction costs reductions (through better donor harmonisation of aid) and to enhanced local...

The paper reviews current research and practice and recommends strategies for development agencies working in the Arab and Muslim world. It builds on the basic assumption that the realization of the Millennium Development Goals will be vital to reduce support for terrorism in the long term....

We argue in this paper that cancelling the debt of the poorest countries was a good thing, but that it should not imply that the debt instrument should be foregone. Debt and debt cancellations are indeed two complementary instruments which, if properly managed, perform better than either loans...

In this paper we examine whether absorptive capacity can constitute sufficient justification for rejecting the proposal of a large aid increase to support the ‘big push’. We argue that the probability of a poverty trap exists for many countries, in particular the least developed countries...

he record of aid to fragile and poorly-performing states is the real test of aid effectiveness. Rich countries can justify aid to fragile states both through altruism and self-interest. But, with some exceptions, donors have appeared at the wrong times and with the wrong attitudes, even...

The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, such as the complete cessation of aid to...