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Performance-Based Conditionality: A European Perspective

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Author Info
Sylviane GUILLAUMONT JEANNENEY () (Centre d'Etudes et de Recherches sur le Développement International)
Patrick GUILLAUMONT () (Centre d'Etudes et de Recherches sur le Développement International)
Gérard CHAMBAS () (Centre d'Etudes et de Recherches sur le Développement International)
Christopher ADAM () (Université Oxford)
Jan Willem GUNNING () (Université libre Amsterdam)

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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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Publisher Info
Paper provided by CERDI in its series Working Papers with number 200306.

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Length: 28
Date of creation: 2003
Date of revision:
Publication status: Published in , 2002, pages
Handle: RePEc:cdi:wpaper:381

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Related research
Keywords: Aid; Conditionality; developing countries; fiscal policy;

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  1. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  2. Guillaumont, Patrick & Guillaumont Jeanneney, Sylviane, 2007. "Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  3. Quibria, M.G & Ahmad, Shafi, 2007. "Aid Effectiveness in Bangladesh," MPRA Paper 10299, University Library of Munich, Germany, revised Sep 2008. [Downloadable!]
  4. Kanbur, Ravi, 2005. "Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures," CEPR Discussion Papers 4971, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Jan Willem Gunning, 2005. "Pourquoi donner de l'aide ?," Revue d’économie du développement, De Boeck Université, vol. 19(2), pages 7-50. [Downloadable!]
  6. Machiko Nissanke & Benno Ferrarini, 2007. "Assessing the Aid Allocation and Debt Sustainability Framework: Working Towards Incentive Compatible Aid Contracts," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  7. 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. [Downloadable!]
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This page was last updated on 2009-11-25.

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