A case for aid: building consensus for development by James D. Wolfensohn PDF

By James D. Wolfensohn

ISBN-10: 0821351621

ISBN-13: 9780821351628

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Extra info for A case for aid: building consensus for development assistance

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Fortunately, most developing countries have strengthened their policies, institutions, and governance. Over the last 20 years, developing countries’ income per capita has been growing faster than income per capita of the high-income countries, and many poor countries have demonstrated that they can use aid well. In these countries, additional resources can be put to use immediately. The rich countries have recognized these changes. They also have a deepening sense of the ethical as well as self-interested arguments for aid.

Although it is too early to gauge outcomes on the ground, full PRSPs are so far associated with a 20-percent increase in spending in poverty-related areas. A similar shift in the balance of spending is associated with the Highly Indebted Poor Country (HIPC) debt relief programs developed since the mid1990s and led by the World Bank and International Monetary Fund (IMF). World Bank effectiveness at the program/sector/project level Measured results show that the Bank’s actions have been broadly successful in promoting higher productivity and human development, especially over the past decade.

Development is a risky business. To develop ideas, the Bank has to take some risks, and some failures are inevitable. What is essential is to learn from those failures. The Bank has done so: for example, by launching a successful Higher Impact Adjustment Lending (HIAL) initiative in Africa in 1995 to improve design and country selection in line with lessons from evaluation; and by changing its approach to the power sector in Africa. The Bank builds on success by scaling up initiatives that work, such as the high-return dairy cooperative program (Operation Flood) in India.

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A case for aid: building consensus for development assistance by James D. Wolfensohn

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