Supervision and Performance : The Case of World Bank Projects
AbstractThis paper explores empirical aspects of the relation between supervision and project performance. I focus on development projects funded by the World Bank and on supervision done by the World Bank. The World Bank is the preeminent international development organization both in terms of money lent and leadership; furthermore, data measuring project performance and supervision are relatively comprehensive. The link between supervision and performance is of theoretical interest because it illuminates one side of World Bank-borrower interaction and of practical interest because supervision is an instrument controlled by the World Bank which may improve project performance. Data are from 1426 World Bank-funded projects completed between 1981 and 1991. Analysis of the influence of World Bank supervision on project performance uses annual supervision and annual interim performance ratings. The annual updating process which generates the discrete interim ratings is described by an ordered probit likelihood function. Maximum likelihood estimates indicate a positive impact of early supervision on performance; late supervision has significantly less influence. The estimation predicts that a significant and persistent increase in the level of supervision may lead to a gain of several percentage points in the economic rate of return. Because of the size of World Bank-funded projects, the potential gains from increasing supervision far outweigh the costs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1995-45.
Date of creation: 1995
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
Other versions of this item:
- Kilby, Christopher, 2000. "Supervision and performance: the case of World Bank projects," Journal of Development Economics, Elsevier, vol. 62(1), pages 233-259, June.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kaufmann, Daniel & Wang, Yan, 1995. "Macroeconomic policies and project performance in the social sectors: A model of human capital production and evidence from LDCs," World Development, Elsevier, vol. 23(5), pages 751-765, May.
- Deininger, Klaus & Squire, Lyn & Basu, Swati, 1998. "Does Economic Analysis Improve the Quality of Foreign Assistance?," World Bank Economic Review, World Bank Group, vol. 12(3), pages 385-418, September.
- Gourieroux, Christian & Monfort, Alain & Renault, Eric & Trognon, Alain, 1987.
Journal of Econometrics,
Elsevier, vol. 34(1-2), pages 201-252.
- G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
- Jonathan Isham & Daniel Kaufmann, 1999.
"The Forgotten Rationale For Policy Reform: The Productivity Of Investment Projects,"
The Quarterly Journal of Economics,
MIT Press, vol. 114(1), pages 149-184, February.
- Isham, Jonathan & Kaufmann,Daniel, 1995. "The forgotten rationale for policy reform : the productivity of investment projects," Policy Research Working Paper Series 1549, The World Bank.
- Trumbull, William N & Wall, Howard J, 1994. "Estimating Aid-Allocation Criteria with Panel Data," Economic Journal, Royal Economic Society, vol. 104(425), pages 876-82, July.
- Dewald, Michael & Weder, Rolf, 1996. "Comparative advantage and bilateral foreign aid policy," World Development, Elsevier, vol. 24(3), pages 549-556, March.
- Kilby, C., 1994.
"World Bank-borrower relations and project supervision,"
1994-14, Tilburg University, Center for Economic Research.
- Kilby, Christopher, 1995. "World Bank Borrower Relations and Project Supervision," Vassar College Department of Economics Working Paper Series 32, Vassar College Department of Economics.
- Katada, Saori N., 1997. "Two aid hegemons: Japanese-US interaction and aid allocation to Latin America and the Caribbean," World Development, Elsevier, vol. 25(6), pages 931-945, June.
- Pohl, Gerhard & Mihaljek, Dubravko, 1992. "Project Evaluation and Uncertainty in Practice: A Statistical Analysis of Rate-of-Return Divergences of 1,015 World Bank Projects," World Bank Economic Review, World Bank Group, vol. 6(2), pages 255-77, May.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.