Ideas to Action:

Independent research for global prosperity

Publications

 
February 19, 2008

U.S. Assistance to Africa and the World: What Do the Numbers Say?

With President Bush's trip to Africa making headlines this week, CGD senior fellow Steve Radelet and research assistant Sami Bazzi offer a close look at the latest U.S. foreign assistance numbers. Bottom line: although America's aid has more than doubled since 2000, the new money went mostly to Iraq, Afghanistan and a small number of debt relief operations; and almost all was allocated through bilateral rather than multilateral channels. Assistance to Africa more than quadrupled from $1.5 billion in 1996 to $6.6 billion in 2006 and has been enormously important in funding humanitarian relief and HIV/AIDS programs. But even with the increases, U.S. assistance to Africa still averages less than $9 per African per year. And U.S. assistance for Africa has become less selective: since 2000 the shares going to the poorest countries and to the best-governed countries have fallen.

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April 16, 2007

Liberia's External Debt: Moving Towards Comprehensive Debt Relief

In this essay, CGD senior fellow Steve Radelet describes Liberia's debt situation and the key issues in moving forward on debt relief with the IMF, World Bank, African Development Bank and bilateral creditors. He explains why it is important for Liberia's recovery that the international community act quickly and outlines the key steps necessary for Liberia to achieve a debt deal before the end of 2007.

November 6, 2006

China's Export-Import Bank and Africa: New Lending, New Challenges

China's bid for a leading role in Africa gained sudden visibility on the weekend with an unprecedented gathering of leaders from 48 African countries in Beijing. Chinese president Hu Jintao pledged to double aid and to offer $5 billion in loans by 2009. China's newly high-profile overtures towards Africa have raised eyebrows—and a fair bit of anxiety—among Africa’s traditional development partners. Will Chinese lending lead to a new African debt crisis? In a new CGD Note, senior fellow Todd Moss and research assistant Sarah Rose examine the growing clout of a little-known instrument of China's Africa policy, the Export-Import Bank of China, and offer some advice for the West. Learn more

May 26, 2006

Will Debt Relief Make a Difference? Impact and Expectations of the Multilateral Debt Relief Initiative - Working Paper 88

The Multilateral Debt Relief Initiative (MDRI), the latest phase of debt reduction for poor countries from the World Bank, the IMF, and the African Development Bank, will come close to full debt reduction for at least 19 and perhaps as many as 40 countries. Debt relief proponents see it as a momentous leap in the battle against global poverty. CGD research fellow Todd Moss argues that actual gains in poverty reduction will be modest and slow. learn More

July 19, 2005

U.S. Pledges of Aid to Africa: Let's Do the Numbers

Before the G-8 Summit, President Bush said that U.S. aid to Africa had tripled since he took office and would double again by 2010. CGD’s Steve Radelet and Bilal Siddiqi find that total U.S. aid to the region has doubled, but not tripled, since 2000, continuing an upward trend that began in 1996. Going forward, the pledge to double aid implies an additional $4.3 billion in aid to Africa by 2010, accounted for by projected increases in the Millennium Challenge Account ($2.0-$2.5 billion), the global AIDS program (PEPFAR) ($1.5 billion), and the recently announced malaria program ($0.5 billion). The pledge to double aid should be seen as a recommitment to previous (important) pledges, rather than an announcement of something new.

May 17, 2005

Reflections on "Our Common Interest," The Report of the Commission on Africa

CGD President Nancy Birdsall testified before the U.S. Senate Foreign Relations Committee on Tuesday, May 17, 2005 on the Commission for Africa report initiated by Tony Blair. She suggested the U.S. should prepare a package of Africa-related initiatives for the UK-hosted G-8 Summit in July covering areas such as peace and security, advance market commitments for vaccines; debt relief, trade, and aid delivery. Sen. Lugar praised the proposal for an advance market commitment for vaccines. "This is an extraordinary idea and I thank you for bringing it to our attention," he said.

April 1, 2005

Resolving Nigeria’s Debt Through a Discounted Buyback

Nigeria has $33 billion in external debt. The government has been trying unsuccessfully for years to cut a deal with creditors to reduce its external obligations but to date has only managed to gain non-concessional restructuring. The major creditors also have good reasons for wanting to seek a resolution, yet agreement has been elusive. Fortunately, there is a brief window of opportunity in 2005 to find a compromise that can meet the needs of both sides. This note briefly outlines a proposal for striking such a deal through a discounted debt buyback.
March 23, 2005

Overcoming Stagnation in Aid-Dependent Countries - Brief

Traditional economic theory predicts that capital mobility and international trade will push the world's national economies to one income level. As poorer nations race ahead, richer ones should slow down. Eventually, theory says, national economies would reach equilibrium. The reality of the last few decades, however, defies this notion; most of the poorest economies continue to lag far behind. For 50 years, foreign aid has been the main way the international community has promoted economic development. Yet it has not proven to be a silver bullet.
March 1, 2005

Double Standards on IDA and Debt: The Case for Reclassifying Nigeria

Although nearly all poor countries are classified by the World Bank as IDA-only, Nigeria stands out as a notable exception. Indeed, Africa’s most populous country is the poorest country in the world that is not classified as IDA-only. Under the World Bank’s own criteria, however, Nigeria has a strong case for reclassification. IDA-only status would have two potential benefits for Nigeria. First, it would expand Nigeria’s access to IDA resources and make the country eligible for grants. Second, it would strengthen Nigeria’s case for debt reduction. With a renewed economic reform effort getting under way and the emerging use of debt reduction as a tool for assisting economic and political transitions, the UK, the US, and other official creditors should support such a move as part of a broader strategy for encouraging progress in one of Africa’s most important countries.
Todd Moss and Scott Standley
October 30, 2002

Policy Selectivity Foregone: Debt and Donor Behavior in Africa - Working Paper 17

We assess the dynamic behind the high net resource transfers of donors and creditors, IDA, bilaterals, IBRD, IMF and other multilateral creditors to the countries of sub-Saharan Africa in the 1980s and 1990s. Analyzing a panel of 37 recipient countries over the years 1978-98, we find that net transfers were greater in poorer and smaller countries. The quality of countries' policy framework mattered little, however, in determining overall net transfers.
Ishac Diwan
April 1, 2002

Delivering on Debt Relief

Over the last several years, the United States and other major donor countries have supported a historic initiative to write down the official debts of a group of heavily indebted poor countries, or HIPCs. Donor countries had two primary goals in supporting debt relief: to reduce countries' debt burdens to levels that would allow them to achieve sustainable growth; and to promote a new way of assisting poor countries focused on home-grown poverty alleviation and human development. While the current "enhanced HIPC" program of debt relief is more ambitious than any previous initiative, it will fall short of meeting these goals. We propose expanding the HIPC program to include all low-income countries and increasing the resources dedicated to debt relief. Because debt relief will still only be a first step, we also recommend reforms of the current "aid architecture" that will make debt more predictably sustainable, make aid more efficient, and help recipient countries graduate from aid dependence.
Brian Deese