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Losing Concentration? Lessons from a Swedish Aid Policy Reform

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Abstract
Sweden is one of the donor countries that signed on to the Paris Agenda, which amongst other things advocated reducing aid dispersion. It also adopted its own geographical concentration policy in 2007. My empirical analysis shows that Sweden only managed to achieve this goal for two years following the reform and that the episode was followed by backsliding. Moreover, its current aid policy framework barely mentions the topic. I argue that a major reason was the failure to institutionalise the policy. This left it vulnerable to the regular politics of aid, which tend to generate both geographic and thematic spread. Reduced peer pressure as the international community has moved away from the Paris Agenda might also have contributed.

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  • Jansen Hagen, Rune, 2017. "Losing Concentration? Lessons from a Swedish Aid Policy Reform," Working Papers in Economics 13/17, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2017_013
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    More about this item

    Keywords

    Foreign aid; Paris Agenda; aid dispersion; Theil Index; Sweden;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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