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After the Big Push? Fiscal and Institutional Implications of Large Aid Increases

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  • Todd Moss
  • Arvind Subramanian

Abstract

There are indications that overseas development assistance budgets will continue to increase in coming years, spurred in part by growing calls for a ‘Big Push’ in aid to the poorest countries. In this paper, we estimate the effect of six proposals on aid intensity ratios for 52 low-income countries. We find that, in the average scenario, 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. We also consider possible negative influences of such increases on the incentives for institutional development, on the accountability of state institutions to their own populations, and on long-term sustainability.

Suggested Citation

  • Todd Moss & Arvind Subramanian, 2005. "After the Big Push? Fiscal and Institutional Implications of Large Aid Increases," Working Papers 71, Center for Global Development.
    • Handle: RePEc:cgd:wpaper:71
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    File URL: https://www.cgdev.org/content/publications/detail/4436
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    Cited by:

    1. Karimi, Abdul Matin, 2020. "Moving Away from Foreign Aid: A Case Study of Afghanistan," MPRA Paper 105524, University Library of Munich, Germany, revised 23 Jan 2021.
    2. Elsabé Loots, 2006. "Aid And Development In Africa: The Debate, The Challenges And The Way Forward," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 363-381, September.
    3. Dorothy McCormick, 2008. "China & India as Africa's New Donors: The Impact of Aid on Development," Review of African Political Economy, Taylor & Francis Journals, vol. 35(115), pages 73-92, March.

    More about this item

    Keywords

    overseas development assistance; big push;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F35 - International Economics - - International Finance - - - Foreign Aid

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