Aid Policy and the Macroeconomic Management of Aid

This is an introduction to the UNU-WIDER special issue of World Development on aid policy and the macroeconomic management of aid. We provide an overview of the 10 studies, grouping them under three sub-themes: the aid-growth relationship; the supply-side of aid (including its level, volatility, and coordination of donors); and the macroeconomic framework around aid. The studies in the special issue demonstrate the centrality of research methodology, the importance of disaggregation, and the need to account for country-specific situations and problems. This introduction concludes that the sometimes “over heated” debate on aid needs redirecting toward more rigorous analysis, in which the advantages-and disadvantages-of using aid for development can be evaluated in a calmer manner.