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Performance-Based Conditionality: A European Perspective

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  • Adam, Christopher
  • Chambas, Gerard
  • Guillaumont, Patrick
  • Guillaumont Jeanneney, Sylviane
  • Gunning, Jan Willem

Abstract

For several years, the conditionality underpinning budgetary support to developing countries has been the object of severe criticism. This criticism has led to the belief that the “ownership of policies” by the recipient country governments is essential for the effective implementation of economic reform programmes. To this end, it has been suggested that traditional conditionality based on policy measures be replaced by a conditionality in which aid is based on performance outcomes. In this spirit, the European Commission has reformed its adjustment aid. The present article provides an assessment of this experiment based on the experiences in Benin, Burkina Faso, Madagascar and Uganda. It demonstrates the danger of a shift towards intermediate indicators, which are too distant from the final impact of the policies, and suggests several improvements to implement genuine performance-based conditionality.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 32 (2004)
Issue (Month): 6 (June)
Pages: 1059-1070

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Handle: RePEc:eee:wdevel:v:32:y:2004:i:6:p:1059-1070

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References

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  1. Collier, Paul & Gunning, Jan Willem, 1999. "The IMF's Role in Structural Adjustment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 109(459), pages F634-51, November.
  2. Mohsin S. Khan & Sunil Sharma, 2001. "IMF Conditionality and Country Ownership of Programs," IMF Working Papers 01/142, International Monetary Fund.
  3. Collier, Paul & Guillaumont, Patrick & Guillaumont, Sylviane & Gunning, Jan Willem, 1997. "Redesigning conditionality," World Development, Elsevier, Elsevier, vol. 25(9), pages 1399-1407, September.
  4. Miguel A. Savastano & Michael Mussa, 1999. "The IMF Approach to Economic Stabilization," IMF Working Papers 99/104, International Monetary Fund.
  5. Adam, Christopher S. & Gunning, Jan Willem, 2002. "Redesigning the Aid Contract: Donors' Use of Performance Indicators in Uganda," World Development, Elsevier, Elsevier, vol. 30(12), pages 2045-2056, December.
  6. C. S. Adam & S. A. O'Connell, 1999. "Aid, Taxation and Development in Sub-Saharan Africa," Economics and Politics, Wiley Blackwell, Wiley Blackwell, vol. 11(3), pages 225-253, November.
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Citations

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Cited by:
  1. Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2010. "Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches," Working Papers id:3000, eSocialSciences.
  2. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
  3. Holvoet, N. & Renard, Robrecht, 2007. "Monitoring and evaluation under the PRSP: Solid rock or quicksand?," Evaluation and Program Planning, Elsevier, Elsevier, vol. 30(1), pages 66-81, February.
  4. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, Elsevier, Elsevier.
  5. Patrick GUILLAUMONT, 2009. "Aid effectiveness for poverty reduction: macroeconomic overview and emerging issues," Working Papers P05, FERDI.
  6. Kanbur, Ravi, 2005. "Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures," Working Papers, Cornell University, Department of Applied Economics and Management 127071, Cornell University, Department of Applied Economics and Management.
  7. Quibria, M.G & Ahmad, Shafi, 2007. "Aid Effectiveness in Bangladesh," MPRA Paper 10299, University Library of Munich, Germany, revised Sep 2008.
  8. Patrick Guillaumont, 2011. "Aid effectiveness for poverty reduction:macroeconomic overview and emerging issues," Working Papers halshs-00554285, HAL.
  9. Sylviane Guillaumont Jeanneney, 2011. "Les fondements éthiques de l'aide publique au développement : une application à la France," Working Papers halshs-00556808, HAL.
  10. Ravi Kanbur, 2005. "Réformer la formule : une modeste proposition pour inclure des critères de résultats dans les procédures d'allocation de l'aide de l'IDA," Revue d’économie du développement, De Boeck Université, vol. 19(2), pages 79-108.
  11. Gaoussou Diarra, 2011. "Aid unpredictability and absorptive capacity: analyzing disbursement delays in Africa," Economics Bulletin, AccessEcon, vol. 31(1), pages 1004-1017.
  12. Jan Willem Gunning, 2005. "Pourquoi donner de l'aide ?," Revue d’économie du développement, De Boeck Université, vol. 19(2), pages 7-50.
  13. Patrick GUILLAUMONT, 2009. "Aid effectiveness for poverty reduction: macroeconomic overview and emerging issues," Working Papers P05, FERDI.

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