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Global Economy Journal

The Official Publication of the International Trade and Finance Association

Ed. by Pelzman, Joseph

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Volume 17, Issue 3


Linking ODA to the MPI: A Proposal for Latin America

Jose Maria Larru
Published Online: 2017-08-24 | DOI: https://doi.org/10.1515/gej-2017-0041


The article starts from the Multidimensional Poverty Index (MPI) methodology and measures (Santos et al. 2015) available, and uses them to compare the current disbursements of Official Development Aid (ODA) with MPI-related deprivations and indicators. In particular, the six deprivation dimensions are matched with the current sectorial classifications contained in the OECD-CRS database. This empirical exercise allows making a comparison between ODA donors’ current disbursements (priorities) and normative disbursements, if the MPI were taken as the rule in order to attain the objective of real poverty eradication. Important political consequences of this counterfactual exercise are deduced: Latin American development agencies (ministries or departments) should start to register ODA flows using the multidimensional poverty dimensions (housing, basic services, standard of living, education, and employment, and social protection); donors (both North-South and South-South Cooperation) should focus their resources and priorities on the MPI structure, increasing recipients’ ownership of development strategies and interventions. This information and way of delivery may make it possible to focus the evaluation of ODA flows more deeply on their impact on poverty, in line with Busan’s recommendations and the post-2015 development agenda (SDG 1).

Keywords: human development; foreign aid; multidimensional poverty index; normative scenario; ownership


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Published Online: 2017-08-24

Citation Information: Global Economy Journal, Volume 17, Issue 3, 20170041, ISSN (Online) 1553-5304, DOI: https://doi.org/10.1515/gej-2017-0041.

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