Pity the Finance Minister: Issues in Managing a Substantial Scaling-Up of Aid Flows

September 1, 2005

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Format: Chicago

Peter S. Heller Pity the Finance Minister: Issues in Managing a Substantial Scaling-Up of Aid Flows, (USA: International Monetary Fund, 2005) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Substantially scaling up of aid flows will require development partners to address many issues, including the impact of higher aid flows on: the competitiveness of aid recipients; the management of fiscal and monetary policy; the delivery of public services; behavioral incentives; and the rate of growth of the economy. Other issues will include the appropriate sequencing of aid-financed investments; balancing alternative expenditure priorities; the implications for fiscal and budget sustainability; and exit strategies from donor funding. Donors will need to ensure greater long-term predictability and reduced short-term volatility of aid. The international financial institutions can play a critical role in helping countries address these scaling-up issues.

Subject: Aid flows, Budget planning and preparation, Expenditure, Fiscal policy, Foreign aid, Foreign exchange, Public financial management (PFM), Real exchange rates

Keywords: Aid donors, Aid flows, Budget planning and preparation, Country authorities, Dutch Disease, Exchange rate, Expenditure program, Financial support, Fiscal Policy, Foreign Aid, Global, Government program, Monetary policy, Private sector, Real exchange rates, Recipient country, Recipient government, WP

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/180
Stock No:

WPIEA2005180
ISBN:

9781451861990
ISSN:

1018-5941

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