An equal-opportunity approach to the allocation of international aid

How should international aid be distributed? The most common view is according to some utilitarian formula: in order to maximize the average growth rate of aid recipients or the growth rate of income of the class of recipient countries. Recently, the The World Bank [The World Bank, 1998. Assessing aid, World bank policy research report] has published a study demonstrating the importance of good economic management, within a recipient country, in transforming aid into economic growth. We identify good economic management with effort, and ask, how should aid be distributed to equalize opportunities [among recipient countries] for achieving growth, according to Roemer's theory of equal opportunity [Roemer, J.E., 1998, Equality of Opportunity. Harvard University Press, Cambridge, MA] (C) 2001 Elsevier Science B.V. All rights reserved. JEL classification: D61; D63; O19.