Aid Targeting to Fragile and Conflict-Affected States and Implications for Aid Effectiveness

Abstract

While significant amounts of foreign aid have been allocated to the group of so-called fragile and conflict-affected states in recent years, it is not clear whether that aid is targeted to where it is most needed. This article extends recent work by Carment and Samy (2017, in press), and focuses on aid targeting in fragile states by using the Country Indicators for Foreign Policy fragility index together with sectoral aid flows from the OECD Creditor Reporting System. Specifically, it considers six country-cases from a three-fold typology of states and evaluates the performance of these countries in terms of their fragility relative to the types of aid that they have received. The article argues that aid is poorly targeted in fragile states and by considering the sectoral allocation of aid it also contributes indirectly to the related issue of aid effectiveness.