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Costs, Benefits and the Political Economy of Aid Coordination: The Case of the European Union

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  • Stephan Klingebiel

    (Deutsches Institut für Entwicklungspolitik (DIE)/German Development Institute)

  • Mario Negre

    (Deutsches Institut für Entwicklungspolitik (DIE)/German Development Institute)

  • Pedro Morazán

    (SÜDWIND e.V. – Institut für Ökonomie und Ökumene)

Abstract

Although it is not possible to identify a specific, theoretical optimum level of aid coordination for the European Union, there is a broad consensus on the need for reduced transaction costs and greater impact through a stronger adherence to coordination standards. However, neither member states nor European institutions consequently follow a policy in line with a clear coordination principle. And nor do partner countries always push for more donor coordination. This article uses evidence from two country case studies, Myanmar and Rwanda, in which a conducive aid coordination environment is assumed. The former represents the new foundation of an aid architecture in a country, thus expecting the application of high aid effectiveness standards. The latter consists of a partner government with a strong leading role in aid. Although the political economy of donors and partner countries does not always favour coordination, strong recipient government leadership is crucial to align developmental objectives and clearly establish comparative advantages and division of labour among donors.

Suggested Citation

  • Stephan Klingebiel & Mario Negre & Pedro Morazán, 2017. "Costs, Benefits and the Political Economy of Aid Coordination: The Case of the European Union," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(1), pages 144-159, January.
    • Handle: RePEc:pal:eurjdr:v:29:y:2017:i:1:d:10.1057_ejdr.2015.84
    DOI: 10.1057/ejdr.2015.84
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    References listed on IDEAS

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    Cited by:

    1. Erik Lundsgaarde & Niels Keijzer, 2019. "Development Cooperation in a Multilevel and Multistakeholder Setting: From Planning towards Enabling Coordinated Action?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(2), pages 215-234, April.
    2. Baumann, Max-Otto, 2018. "Mission impossible? Country-level coordination in the UN development system," IDOS Discussion Papers 7/2018, German Institute of Development and Sustainability (IDOS).
    3. Kaplan, Lennart, 2020. "Systemic challenges and opportunities of Franco-German development cooperation," IDOS Discussion Papers 10/2020, German Institute of Development and Sustainability (IDOS).

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