This paper assesses the macroeconomic implications of scaling up aid for Benin in line with the Gleneagles commitment to double aid to poor countries over the next three years to reach 85 per capita by 2010 and keep it at that level thereafter. The analysis suggests that the additional aid...

This paper analyses economic implications and the transmission mechanisms of different options for creating and using fiscal space. For creating fiscal space, we consider prioritizing expenditures, raising revenue, and scaled-up aid. Fiscal space is used for increasing health and education...

Intro -- Contents -- I. INTRODUCTION -- II. SCALING UP AID AND THE ROLE OF THE IMF -- III. WHY WAGE BILL CEILINGS? -- IV. WAGE BILL CONDITIONALITY IN PRACTICE -- V. DO WAGE BILL CEILINGS ACCOMMODATE DONOR-FINANCED WAGE SPENDING IN PRIORITY SECTORS? -- VI. IMPROVING WAGE BILL CONDITIONALITY --...