External Financing of Social Protection: Opportunities and Risks
Article first published online: 6 DEC 2011
© The Author 2012. Development Policy Review © 2012 Overseas Development Institute.
Development Policy Review
Volume 30, Issue 1, pages 5–27, January 2012
How to Cite
Holmqvist, G. (2012), External Financing of Social Protection: Opportunities and Risks. Development Policy Review, 30: 5–27. doi: 10.1111/j.1467-7679.2012.00557.x
- Issue published online: 6 DEC 2011
- Article first published online: 6 DEC 2011
- first submitted September 2010, final revision accepted May 2011
- Social transfers;
- social protection;
- aid modalities
Social transfers have reached the policy agenda of low-income countries in Africa, where affordability is a key concern and aid dependence is high. In terms of magnitude, aid could make a substantial difference in relaxing the affordability constraint. This article addresses issues that arise as external financing is contemplated. Cash on delivery (COD) aid is discussed as an alternative aid contract when the political ownership is strong. The potential for external financing where political ownership is weak is also discussed, and the limitations of aid under such circumstances are recognised.