The supply of aid

Bita Hadjimichael · Tim Harford · Michael U. Klein

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International Development and Aid Global Financial Crisis and Policies Economic, financial, and policy analysis

Abstract

This Note reviews trends in official development assistance, focusing on volumes, sources, forms, and recipients. Several patterns emerge. First, a long-term trend of official flows taking the form of hard loans rather than grants and soft loans, with low interest and long maturities, has been reversed in the past five years. Second, both grants and loans are increasingly aimed at middle-income countries rather than the poorest. And third, official flows have fallen relative to rich-country income by 30 percent in the past 30 years.

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