One factor limiting aid effectiveness is its volatility. We examine aid volatility in 66 countries over 1975-2004, paying particular attention to the characteristics of 'difficult partnership countries' and making a distinction between sector aid and total aid. We explore whether weak recipient...

Issues related to the volatility of aid flows are now becoming crucial in view of their relevance to the achievement of the Millennium Development Goals. The paper examines aid volatility using data for 66 aid recipients over the period 1973-2002. We improve upon earlier work in this important...