Are there country size and middle‐income biases in the provision of EC multilateral foreign aid?

This article investigates whether the European Community (EC) multilateral aid allocation process is characterised by certain biases. Using EC multilateral aid to 87 developing countries over the ten‐year period 1986–95, we find evidence that EC aid favours smaller countries as well as those covered under the Lome Convention. In addition, we find some support for the notion that EC aid discriminates in favour of richer developing countries. The study concludes, therefore, that the EC's multilateral aid distribution is highly politicised.