Aid distribution and the MDGs

Abstract

This paper examines whether the major bilateral and multilateral donors distribute their aid in accordance with the Millennium Development Goals (MDGs). Aid concentration curves for monetary poverty, child malnutrition, primary school enrollments, and under-five mortality are used to assess whether aid is distributed to the poorest and most deprived countries. Major contrasts between the progressivity and regressivity of different donor’s aid programs are observed. The United Kingdom and World Bank distribute around two-thirds of their concessionary aid to the low income countries. In contrast, the United States and European Commission spend the majority of their aid budgets in middle income countries