By Lael Brainard, Carol L. Graham, Nigel Purvis, Steven Radelet, Gayle E. Smith

ISBN-10: 081571114X

ISBN-13: 9780815711148

ISBN-10: 0815711190

ISBN-13: 9780815711193

In March 2002, President Bush introduced the production of the Millennium problem Account (MCA), a bilateral improvement fund representing a rise of $5 billion in keeping with yr over present suggestions degrees, to advertise development in reform-oriented constructing nations. This booklet considers the opportunity of the MCA in addition to the bigger content material people overseas suggestions during which the MCA needs to locate its position. whereas the MCA might create incentives for governments to enhance financial rules and governance, and enhance funding climates, it may well additionally upload to the confusion of overlapping overseas tips companies. The authors urge the management to obviously outline the MCA's function and to deal with the continual tensions among international coverage and improvement objectives - tensions which were made more challenging by means of issues over terrorism and nationwide safety. In making tips about the right way to enforce the MCA successfully, this publication heavily examines prior reduction efforts, traits within the US finances for overseas suggestions, the organizations at the moment fascinated by administering US improvement coverage, and the ways that congress can impact and be sure relief results.

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These studies use differing sample sizes and specifications, cover different time periods, and control for a variety of other factors besides aid, making comparisons difficult. 5 Moreover the focus on the quality of policies in the recipient country, however important, only takes us so far in considering aid effectiveness. Other factors strongly influence the impact of aid, including the quality of the bureaucracy in the donor institutions, donor restrictions (such as aid earmarked for specific activities or tied to purchases in the donor country), reporting requirements, coordination across donors, and the capacity of the recipient country to manage aid money.

One cannot help but wonder if the surprise decision to include these countries was at least partly motivated by a desire of some officials to have MCA funds available for strategic reasons when necessary. S. assistance in supporting development. Adding the countries with per capita incomes between $1,435 and $2,975 raises another issue. How will MCA funds be allocated between these countries and the lower-income group? There are two basic choices: Establish two pools of money, with a fixed amount of funding allocated to each group every year, or rely on a single pool of money, with the quality of proposals and country performance determining funding allocations.

They can also better align expectations of the process—both inside and outside the countries—with institutional capacities. 19 The learning that is occurring in these areas as the PRSPs go forward is invaluable. An additional point, which relates to the need to better coordinate the efforts of donors, is the need for more and new kinds of technical assistance as the PRSP process moves into the implementation phase. At present the World Bank and the IMF, as well as other donors, attempt to identify areas where assistance is necessary in the PRSP process.

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The Other War: Global Poverty and the Millennium Challenge Account by Lael Brainard, Carol L. Graham, Nigel Purvis, Steven Radelet, Gayle E. Smith

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