We define ‘failing states’ are those low-income states in which policy and governance is persistently very bad. We develop a theory of reform in these states in which several characteristics of the society might potentially be the binding constraint on change. We then introduce aid,...

Cet article compare deux conceptions relatives à l'efficacité de l'aide et à son allocation. La première, qui correspond au nouveau paradigme de l'aide, soutient que l'aide n'est efficace que si la politique économique des pays receveurs est bonne. Selon la seconde, présentée ici,...

This paper revisits the relationship between aid and growth, adding new assumptions to the standard Burnside-Dollar model, where aid effectiveness depends only on policy: 1) policy itself depends on aid, which involves a dynamic formulation of the standard model, 2) aid effectiveness...

In two previous papers we have argued that aid is likely to mitigate the negative effects of external shocks on economic growth (i.e. that aid is more effective in countries which are more vulnerable to external shocks). Recently an important debate has emerged about the possible negative...

The purpose of this paper is to examine what kind of global measures may be efficiently implemented to help the developing countries to face price shocks, avoiding the past failures, which needs to take into account the long term trend of the markets. Firstly, we recall the nature of the...

In previous papers we have argued that aid is likely to mitigate the negative effects of external shocks on economic growth (i.e. that aid is more effective in countries which are more vulnerable to external shocks). Recently an important debate has emerged about the possible negative effects of...

The purpose of this paper is to examine what kind of global measures may be efficiently implemented to help the developing countries to face price shocks, avoiding the past failures, which needs to take into account the long term trend of the markets. Firstly, we recall the nature of the...

This paper reviews the policy implications of research on reform in failing states ( <link rid="b1">Chauvet and Collier 2006</link>, <link rid="b2 b3">2007a, 2007b</link>, <link rid="b4">2008</link>; <link rid="b5">Chauvet et al. 2006</link>; <link rid="b6">Chauvet et al. 2007a</link>, <link rid="b7">2007b</link>). After providing a precise definition of state failure and reform in such states, we present the internal...

We propose an econometric analysis of the distributive impact of trade flows, foreign direct investment (FDI), official aid and migrants’ remittances. Results suggest that FDI increases inequality, while remittances tend to reduce inequality. Trade and aid have a non-linear relationship with...

Globally, state failure is hugely costly. We estimate the total cost of failing states at around US$276 billion per year. In this paper we apply our global framework and methodology to analyse the cost of failing states in the Pacific Ocean. Globally, failing states inflict very large costs on...