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Macroeconomic Challenges of Scaling Up Aid to Africa :, A Checklist for Practitioners, Yongzheng Yang, Robert Powell, Sanjeev Gupta

Over the next decade, African countries are expected to be the largest beneficiaries of increased donor aid, which is intended to improve their prospects for achieving the Millennium Development Goals. This handbook will help these countries assess the macroeconomic implications of increased aid and respond to the associated policy challenges. The handbook is directed at policymakers, practicing economists in African countries, and the staffs of international financial institutions and donor agencies who participate in preparing medium-term strategies for African countries, including in the context of poverty reduction strategy papers. It provides five main guidelines for developing scaling-up scenarios to help countries identify important policy issues involved in using higher aid flows effectively: to absorb as much aid as possible, to boost growth in the short to medium term, to promote good governance and reduce corruption, to prepare an exit strategy should aid levels decrease, and to regularly reassess the policy mix
Table Of Contents
The macroeconomic effects of scaling up aid -- Managing the real exchange rate -- Using monetary policy for sterilization and inflation management -- Mobilizing adequate domestic revenues -- Projecting the impact of increased aid on economic growth -- Meeting other fiscal challenges -- Strengthening governance -- Maintaining debt sustainability -- Summary: five primary guidelines -- Appendix 1. The relationship between aid flows and exchange rates in Sub-Saharan Africa -- Appendix 2. The macroeconomics of aid
Literary Form
non fiction
Physical Description
1 online resource (78 pages)
Form Of Item

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