Aid Allocation and Fragile States

Project Information

This report describes the different factors that donors take into account when determining their allocations of aid to countries, with a special focus on those that do not achieve 'good performer' status. The study involved a review of literature, analysis of the policies and practices of the main bilateral agencies, and an analysis of data on trends in (bilateral) aid allocation. An underlying concern within the international community has been that a move towards an increasing emphasis on measures of performance or of effective governance in aid allocation decisions may be leading to a situation in which some countries that are potentially effective users of aid, but that have deep governance problems and a poor record of performance, are being allocated a lower share of total aid resources than is desirable.

The study was also presented at seminars on aid allocation and fragility at the Agence Francaise de Developpement and the Netherlands Ministry of Foreign Affairs.