Flows of official development assistance (ODA) to recipient countries have been highly volatile and this reduces their value. At the macro level, empirical evidence suggests that volatile ODA can negatively impact growth through several channels. At the micro level, volatility can affect fiscal planning and the level and composition of investment. This working paper develops a simple financial metric that policy makers can use to estimate (and reduce) the cost of aid volatility. Unlike other es more...

'The extraordinary global challenges and opportunities of the 21st century require a new vision of
American leadership. Advances in technology, communications and transportation allow ideas,
goods, finance and people to cross international borders at unprecedented speeds. While these
changes create significant new opportunities to enhance global cooperation, they also make
Americans more vulnerable to threats that arise from potentially destabilizing forces. Our
increasingly inter-connected more...

'Weak and failed states pose a 21st century threat that requires institutions and engagement renewed for the 21st century.But, the security challenge they present cannot be met through security means alone. The roots of this challenge—and long-term hope for its resolution—lie in development, broadly understood as progress toward stable, accountable national institutions that can meet citizens’ needs and take full part in the workings of the international community.' Jeremy M. Weinstein, Jo more...

'Weak and failed states pose a 21st century threat that requires institutions and engagement renewed for the 21st century.But, the security challenge they present cannot be met through security means alone. The roots of this challenge—and long-term hope for its resolution—lie in development, broadly understood as progress toward stable, accountable national institutions that can meet citizens’ needs and take full part in the workings of the international community.' Jeremy M. Weinstein, Jo more...

Excerpt: 'Foreign aid provides a windfall of resources to recipient countries and may result in the same rent seeking behavior as documented in the 'curse of natural resources' literature. In this paper we discuss this effect and document its magnitude. Using panel data for 108 recipient countries in the period 1960 to 1999, we find that foreign aid has a negative impact on institutions. In particular, if the foreign aid over GDP that a country receives over a period of five years reaches the 75 more...

International development and relief agency Oxfam America recently welcomed a bipartisan resolution introduced by Representatives Betty McCollum (D-MN), Christopher Shays (R-CT) and John Tierney (D-MA). The agency said the resolution, which would commit the House of Representatives to fundamental US foreign aid reform, is an important step to strengthen America’s efforts to fight global poverty.

'In a recent op-ed, Lael Brainard and Noam Unger explore how the current global food crisis showcases America’s weakened foreign aid capacity and argue that the U.S. must modernize and reform its foreign aid system in order to lead effectively and offer real solutions to global poverty. The article was published in a recent Los Angeles Times online forum on food diplomacy.'

'With hard power assets stretched thin and confronting unprecedented global challenges of transnational threats, poverty, and pandemics, America must reform its weak aid infrastructure to leverage its soft power more effectively. While foreign assistance funding has seen the greatest increase in four decades, this has brought a proliferation of programs, policy incoherence and organizational fragmentation. Moving around the organizational boxes or increasing aid will do little to boost impact, u more...

In this article Tanzania spells out the importance of external finance as far as Socialist Development is concerned.

In September 2007 the Fund Manager sponsored an independent evaluation of the grant allocation process in Round I. The objectives of the study were to (a) evaluate, collect feedback from stakeholders and document lessons learnt, (b) assess whether the process of the allocation of grants ensured transparency, fair and balanced access to 3DF resources, and (c) provide recommendations of any need to and how to redirect 3DF’s future priorities and activities for Round II.