Ideas to Action:

Independent research for global prosperity



July 30, 2004

Whither Development Assistance? An Analysis of the President's 2005 Budget Request

This note reviews the President’s 2005 international affairs budget request and offers insight into the potential MCA allocations in the context of the broader development assistance budget. The authors note that requested funding for the MCA is lower than promised and may be indirectly coming at the expense of existing development assistance programs.

Rikhil Bhavnani
July 22, 2004

Counting Chickens When They Hatch: Timing and the Effects of Aid on Growth - Working Paper 44

Recent research offers differing assessments of the overall, worldwide effect of foreign aid on economic growth in the countries that receive aid. To understand these differences, we re-analyze the same data and same regressions used in the three most influential aid-growth studies. In all three, increases in aid have been followed on average by modest increases in investment and growth. The most plausible explanation is that aid causes some degree of growth in recipient countries, though the magnitude of this relationship is modest, varies greatly across recipients, and diminishes at high levels of aid.

Michael Clemens , Steven Radelet , Rikhil Bhavnani and Samuel Bazzi
July 1, 2004

Anarchy of Numbers data set

CGD working paper 32, "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics" submits seven aid-growth studies to robustness testing and finds that most are fragile. The data used in the paper are in Excel (data set) and Stata formats (4-year and 5-year aggregates). Full results are available in Excel format. All are included in the zip file.