Publication

This paper describes that overseas development assistance budgets will continue to increase. The authors estimate the effect of six proposals on aid intensity ratios for 52 low-income countries and find that at least 35 of these countries would see aid inflows equivalent to more than half of total public expenditure and 17 would cross the 75 percent threshold. The authors also consider possible negative influences of such increases on the incentives for institutional development, the accountability of state institutions to their own populations and long-term sustainability.