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AFRICAN CENTRE FOR ECONOMIC GROWTH
A POLICY RESEARCH AND CONSULTING ORGANIZATION
 
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PROGRAM AGENDA
 
Financial Resources Management
 
External resources or international aid, comprising both official and private aid, has nearly doubled since 2000. Nearly half of it has been allocated to sub-Saharan Africa. The international aid system has also undergone major structural transformation with rising number of players, various emphases, perspectives, and modalities for delivery of these resources. For many low-income developing countries, these resources represent substantial additional resources that augment and complement the country’s own domestic resources from tax and nontax revenues. In many countries, official aid alone can account for as much as 10 to 20 percent of GDP, a level higher than domestic revenues in some cases. The high degree of sub-Saharan Africa’s external resource dependence has important implications for the country’s public financial management, government expenditure, domestic resource mobilization efforts, debt, macroeconomic management, as well as microeconomic resource allocation decisions. ACEG’s research agenda under this theme will include inter alia diagnostic analyses and assessment in specific country context of constraints and opportunities available in promoting effective management of external resources for growth and development. Issues for research under this theme include:
 
i. Analysis of the trend and structure of external resource flows in the country
 
ii. The role of external resources in economic development, evidence and experience of aid and development effectiveness
 
iii. External resources policy formulation and intra-governmental coordination and strategies for foreign aid policy and program negotiation in light the new aid partnership model
 
iv. Macroeconomic effects and management implication of large external resource flows and dependence
 
v. Effects of decentralization and non-governmental organizations on the delivery and coordination of external resource flows
 
vi. Financing issues: economic and financial evaluation of terms of different types of aid and implications on debt management
 
 
 
 
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