Danish Balance of Payments Support

Tarp, Finn (1995): Danish Balance of Payments Support. Published in:

Abstract

This study is an analysis of Danish Balance of Payments Support (BOP) covering the period 1988-94. This aid instrument has not so far been used as an active tool to further Danish policy conditionalities vis-à-vis the reform process in developing countries. On the contrary, BOP has mainly been used in a residual manner, and Commodity Import Support (CIS) has by far been the dominant modality used. Yet, fundamental changes are underway in parallel with the almost complete disappearance of the demand for traditional Danish import support commodities. Thus, other BOP instruments such as debt relief, credit lines, support to Open General License (OGL) systems and co-financing with the World Bank have been on the rise in recent years. Nonetheless, despite the macroeconomic nature of BOP assistance existing evaluation studies and reviews have focused on microeconomic and administrative issues related to BOP disbursements and proper programme management. Very little can therefore at this stage be concluded about the macroeconomic impact of Danish BOP aid.

• Item Type: MPRA Paper
• Language: English
• Keywords: Adjustment, balance of payments support, evaluation of aid and international cooperation
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E42 - Monetary Systems ; Standards ; Regimes ; Government and the Monetary System ; Payment Systems; F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements; F - International Economics > F3 - International Finance > F35 - Foreign Aid

References

Bhaduri, Amid et al., (1993): 'Evaluation of Macroeconomic Impacts of Imports Support to Tanzania'. Trondheim: UNIT, University of Trondheim.

CASA (1989): 'Danish Supplies of Industrial Tallow for Production of Bar Soap in Mozambique'. Copenhagen: Danida.

Cassen, Robert (1994): Does Aid Work?, 2nd ed. Oxford: Clarendon Press.

Cooksey (1987): 'Danish Assistance to the Tanzanian Soap Industry'. Copenhagen: Danida.

DAC (1991): Principles of Programme Aid. Paris: OECD.

Danida (1985): 'Tanzania: Danish Commodity Aid', Part I-V. Copenhagen.

Danida (1988a): 'Tanzania - Commodity Assistance'. Copenhagen.

Danida (1988b): Strategisk Planlægning - Handlingsplan. Copenhagen: Ministry of Foreign Affairs.

Danida (1994a): 'Programbistand - Rapport fra Arbejdsgruppen'. S.1, J.nr. 104Dan.A/59.g. Copenhagen: Ministry of Foreign Affairs.

Danida (1994b): En Verden i Udvikling – Strategi for Dansk Udviklingspolitik Frem Mod År 2000. Copenhagen: Ministry of Foreign Affairs.

Danida (various years): Danidas Årsberetning. Copenhagen: Ministry of Foreign Affairs.

Danida (various years): Danmarks Statslige Bistand til Udviklingslandene - Den Rullende 5 års Plan. Copenhagen: Ministry of Foreign Affairs.

Doryie, Josuhua et. al. (1993): Fungibility and Sustainability: Import Support Tanzania. SIDA Evaluation Report. Stockholm: SIDA.

Mosley, Paul et al. (1991): Aid and Power: The World Bank and Policy Based Lending. London & New York: Routledge.

Rekve, Peter and Jens Erik Torp (1995): 'Danske Erfaringer med Makroøkonomisk Bistand'. Samfundsøkonomen, No.4, pp. 39-46.

Riddell, Roger (1987): Foreign Aid Reconsidered. London: James Currey.

SIDA (1993): Principles of Import Support. Stockholm.

Skarstein, Rune et al. (1988): Norwegian Commodity Import Support to Tanzania. Evaluation report 4.88. Oslo: Norwegian Ministry of Foreign Affairs.

T&B Consult (1994): Evaluation of Danida's Balance of Payments Support, vol. I-II. Copenhagen: Danida.

White, Howard (1992): 'The Macroeconomic Impact of Development Aid: A Critical Survey'. The Journal of Developments Studies, Vol 28, No.2, pp. 163-240.

White, Howard (1992): 'What Do We Know About Aid's Macroeconomic Impact?' Journal of International Development, Vol. 4, pp. 121-137.

White, Howard (ed.) (1994): The Macroeconomics of Aid: Case Studies of Four Countries. The Hague: ISS.

White, Howard (1995): 'Evaluation Methodology for Balance of Payments Support'. Background paper prepared for the workshop on the evaluation of balance of payments support, The Hague, 12-13 October, 1995.

White, Howard and Joke Luttik (1994): 'Country-wide Effects of Aid'. World Bank Policy Research Paper No. 1336. Washington, D.C.: World Bank.