Aid, Multidimensional Poverty and Growth: Reversing the Micro-Macro Paradox in Guinea, Liberia and Sierra Leone

Abstract

This article analyses whether Official Development Assistance (ODA) is linked to multidimensional poverty indicators in the context of the 2030 Agenda for Sustainable Development, the Sustainable Development Indictors and the principles stated by the Global Partnership for Effective Development Co-operation. Focused on three western Sub-Saharan Africa and least developing countries such as Guinea, Liberia and Sierra Leone, this article uses Error Correction Vector Model to estimate if ODA and economic growth are cointegrated and a sectoral and spatial analysis to check if ODA are linked to Multidimensional Poverty Indicators in the sample countries. Despite the 2014 Ebola outbreak, the three countries have achieved noticeable good results in poverty alleviation. Results shows a certain macro-micro paradox because, despite a common trend between aid and growth identified at the macro level, we cannot find any sign of ODA contributions to the multidimensional poverty indicators when the micro level analysis is carried out. Our results may serve to increase the level of implementation of the ownership principle for effective development co-operation and achieve a significant improvement of several goals and targets included on the 2030 Agenda.