Aid fragmentation or aid pluralism? The effect of multiple donors on child survival in developing countries, 1990-2010

While most policy-makers and researchers stress the negative impact of “aid fragmentation” on development outcomes in recipient countries, we argue that the greater diversity of perspectives entailed by higher multiplicity of donors can help select better policies. We hypothesize a U-shaped relationship: countries with a moderate number of donors fare better than countries with either few or many donors. The hypothesis is supported by a generalized method of moments (GMM) analysis of the relationship between health aid donors and child survival in 110 low- and middle-income countries during 1990–2010.