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Head and Heart: Are More Generous Donors Less Effective?

When it comes to development aid, you might think that there is a trade-off between head and heart: that more generous donors would be less serious about making sure that their aid is used properly. But in a new CGD working paper, we find that In general, more generous donors tend also to be the most effective. One possible explanation of this correlation is that much of what we consider to be effective aid involves donors putting the interests of the intended beneficiaries of aid ahead of the interests of the donor country.