Publication

This paper outlines seven possible reasons why 60 percent additional aid to developing countries by to meet the Millennium Development Goals (MDGs) might not be effective. These include microeconomic effects, macroeconomic effects and the impact on political economy. The author finds that there are indeed serious obstacles to effective use of increased aid, but that none are immutable. The paper concludes that, provided increased aid is accompanied by reforms to the way aid is delivered, the capacity of developing countries to absorb and use aid should not be presented as a barrier to the increases in aid which would be needed to meet the MDGs.