Danish Balance of Payments Support

Abstract

Summaries This study is an analysis of Danish Balance of Payments Support (BOP) covering the period 1988–94. This aid instrument was not as significant in Denmark as in other like minded donor countries. Danish BOP was mainly used in a residual manner to keep up disbursement rates and promote procurement from Danish suppliers. Commodity Import Support (CIS) was by far the dominant modality used, although fundamental changes have been on the way since 1991. Nonetheless, despite the macroeconomic nature of BOP assistance existing evaluation studies and reviews have focused on microeconomic and administrative issues. Very little can therefore at this stage be concluded about the macroeconomic impact of Danish BOP aid.