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ABSTRACT: How should the aid financial burden be distributed across donor governments? This article discusses the "distributive justice" of the current aid-financing pattern, and advocates a progressive modality in which citizens from donor countries with higher living standards contribute proportionally more than citizens from countries with lower living standards. For this purpose, we conceive public foreign aid as a tax mechanism for redistributing income on a worldwide scale. The progressivity analysis for 45 bilateral donors (28 DAC countries and 17 non-DAC donors) using concentration curves and Suits indexes between 2000 and 2012 shows that the current distribution of the aid burden is insufficiently progressive (mainly due to the limited contributions of the richer donors). Finally, we argue that a progressive exaction scheme will improve the distributive justice of the aid system.

In this paper, we review and compare the potential and limitations of foreign aid and microfinance as a top-down and bottom-up approaches to financing the development process in poor countries. We not only sustain that reviewing foreign aid is a must for the future of the least-developed countries but also posit that microfinance is a complementary and financially sustainable approach that creates better incentives for development. After calculating the potential effects of microfinance over employment and GDP through a simple empirical exercise, we propose a policy recommendation of redirecting a very small share of official development aid (ODA) resources to microfinance in order to provide options for the most underprivileged populations.

In the paper, the nature of official development assistance (ODA) viewed as a component of general international aid is considered, and mechanisms for providing aid in the context of international promotion of sustainable development are described. Also, the current world trends of providing official development assistance are highlighted, and constantly increasing amount of aid is determined. The latter demonstrates that the donor countries ensure the compliance with their international obligations related to the provision of concessional financing, and technical assistance to support the efforts that are being made by countries in the field of development.The dynamics in the amount of official development assistance is analyzed, and distribution of aid by sources of financing, regions, recipients and sectors is outlined. It is found that the largest flows of ODA go mainly to countries in Africa and Asia, and the smallest go to Europe, primarily to the education and healthcare sector, social infrastructure and economic development.It is pointed out that in Ukraine, one of the largest recipient countries of ODA in Europe, there is no holistic mechanism for analyzing the receipt, distribution and control of official development assistance viewed as an instrument of general international aid.The main challenges of mobilizing foreign assistance to Ukraine are outlined and key steps in addressing these matters are proposed. In order to promote efficient use of aid offered by foreign donors in the form of international assistance for the implementation of development programs in Ukraine, the following steps should be taken: to develop a public strategy for using international aid and a system of control for monitoring over international projects; to design a sound mechanism for analyzing the receipt, distribution and control of foreign assistance; to enhance staff performance in development, support and management of international projects in accordance with the requirements of providers of international aid; to establish a single coordinating body responsible for mobilizing international assistance.Taking these steps will increase the efficiency of using aid offered by foreign donors in the form of international assistance for the implementation of development programs and provide an opportunity to pursue sustainable development goals in Ukraine.

Careful consideration of the appropriate level and composition of aggregate public spending is vital in low income countries, especially in the presence of large volumes of foreign aid. Not only can expansion of the public sector weaken economic growth, but also provision of public services may be difficult to retrench. These issues are relevant to Mozambique as the share of government in GDP already is comparatively high and strategic management of aggregate public spending historically has been weak. A new long-term macroeconomic model quantifies the implications of alternative aggregate spending profiles. It shows that small increases in minimum levels of government spending correspond to large increases in the duration to aid independence. Sharp reductions in aid availability would necessitate significant fiscal and economic adjustments, including cuts in real public spending per capita. For this reason, there is no room for complacency as regards the future of development finance to Mozambique.

Berichte über die ersten beiden (von insgesamt drei) Phasen eines JMCC-Projekts mit dem Titel "Foreign Aid and Development in Palestine". Im Hinblick auf die Debatte zwischen den internationalen Gebern und den Palästinensern soll in diesem Projekt vor allem untersucht werden, ob einerseits die Geber ihren eingegangenen Verpflichtungen nachkommen und ob andererseits die zur Verfügung gestellten Gelder konstruktiv im Sinne dauerhafter Entwicklung verwendet werden. Der erste Bericht präsentiert die Ergebnisse der Phase der Informationssammlung: Höhe der Hilfszusagen und der tatsächlich - von 1994-1996 - geleisteten Hilfe (nach Herkunftsländern); sektorale Verteilung der Hilfsgelder. Der zweite Bericht analysiert die Rolle der Auslandshilfe in der palästinensischen Entwicklungspolitik im Hinblick auf die Ursachen für Ineffizienz: Schlüsselfaktoren effektiver Auslandshilfe (strukturelle, politische und Management-Faktoren); Einschätzung der gegenwärtigen sozio-ökonomischen und politischen Situation; Struktur der Hilfemechanismen im palästinensischen Kontext; effizienzhemmende Faktoren (Koordinationsprobleme; durch die israelische Politik verursachte Probleme; Probleme, die aus dem Übergangscharakter des palästinensischen Gemeinwesens resultieren); Wirtschaftsentwicklung 1992-1996. (DÜI-Hns)