Aid Relationships in Asia: Exploring Ownership in Japanese by Alf Morten Jerve, Yasutami Shimomura, Annette Skovsted

By Alf Morten Jerve, Yasutami Shimomura, Annette Skovsted Hansen (eds.)

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For example, Easterly et al. (2004) argue that their regression results are not robust as they are extremely sensitive to how included key variables such as ‘aid’, ‘policy’ and ‘growth’ are defined and measured. Dalgaard and Hansen (2001) question the theoretical underpinning of the Burnside–Dollar study as well as the sensitivity of their econometric results to the data samples. Guillaumont and Chauvet (2001) argue that aid is most effective when it is available to countries disadvantaged by large external shocks and climatic conditions.

London: Chameleon Press. Hansen, H. and F. Tarp (2001). ‘Aid effectiveness disputed’, Journal of International Development, 12: 375–98. IMF (2003). ‘Issues paper for an evaluation of technical assistance provided by the IMF’. Independent Evaluation Office, 5 November. Washington, DC: IMF. Israel, Arturo (1987). Institutional Development. Incentives to Performance. Washington, DC: World Bank and Baltimore: The John Hopkins University Press. Introduction 21 Jerve, Alf Morten (2002). ’, Forum for Development Studies, no.

As a result, they caution strongly against basing aid allocation rules on single cause explanations. Wangwe (2003) considers the three criteria adopted by Burnside and Dollar for defining good policy–budget surplus, inflation and openness – to be too narrow. In recognition of the fact that the policy performance indicators used in the original Burnside–Dollar study were too limited, the WB subsequently presented a more comprehensive matrix called ‘Country Policy and Institutional Assessment (CPIA)’ for assessing and ranking countries according to their institutional and policy environment for long-term growth and poverty reduction, as discussed below.

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