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Evaluation Bias and Incentive Structures in Bi- and Multilateral Aid Agencies

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Author Info
Katharina Michaelowa
Axel Borrmann

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Abstract

Evaluation is generally considered as an important tool to ensure the effective use of development aid, but it is itself subject to distortions. To derive institutional conditions conducive to effective evaluation, we develop a multi-level principal-agent model focusing on the interests of the different actors involved in the evaluation process. The model highlights two central problems: (i) the aid agencies' conflicting objectives of transparency and self-legitimization, and (ii) the potential collusion between the evaluator and the project manager. Evidence for the World Bank and different German donor agencies reveals concrete institutional requirements for a reduced evaluation bias and increased transparency. Copyright © 2006 The Authors; Journal compilation © 2006 Blackwell Publishing Ltd.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2006.00320.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 10 (2006)
Issue (Month): 2 (05)
Pages: 313-329
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Handle: RePEc:bla:rdevec:v:10:y:2006:i:2:p:313-329

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  1. Ronelle Burger & Trudy Owens, . "Promoting transparency in the NGO sector: Examining the availability and reliability of self-reported data," Discussion Papers 08/11, University of Nottingham, CREDIT. [Downloadable!]
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This page was last updated on 2009-12-19.


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