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Donor coordination and the uses of aid

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  • Bigsten, Arne

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

The paper discusses donor coordination and its implications for the uses of aid. The paper starts by specifying a simple framework for the discussion, and then reviews the theoretical literature. It then provides some data on donor proliferation and discusses how coordination modalities have evolved over time, in particular during the current phase with partnership and ownership. The following sections summarize the limited empirical evidence available on the impact of coordination on transaction costs and public-sector management and governance. A key issue with regard to the latter is how donor coordination affects the incentives of the recipient government. The paper concludes with a review of the policy debate and some policy conclusions.

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File URL: http://hdl.handle.net/2077/2723
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 196.

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Length: 26 pages
Date of creation: 28 Feb 2006
Date of revision:
Handle: RePEc:hhs:gunwpe:0196

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Aid; donor coordination; transaction costs; incentive effects;

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References

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  1. Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, Elsevier, vol. 70(2), pages 381-402, April.
  2. O'Connell, Stephen A. & Soludo, Charles C., 2001. "Aid Intensity in Africa," World Development, Elsevier, Elsevier, vol. 29(9), pages 1527-1552, September.
  3. Berthelemy, Jean-Claude & Tichit, Ariane, 2002. "Bilateral Donors' Aid Allocation Decisions: A Three-dimensional Panel Analysis," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. William Easterly, 2002. "The cartel of good intentions: The problem of bureaucracy in foreign aid," Journal of Economic Policy Reform, Taylor & Francis Journals, Taylor & Francis Journals, vol. 5(4), pages 223-250.
  5. Finn Tarp, 2006. "Aid and Development," Discussion Papers 06-12, University of Copenhagen. Department of Economics.
  6. Kanbur, Ravi & Sandler, Todd & Morrison, Kevin, 1999. "The Future of Development Assistance: Common Pools and International Public Goods," Staff General Research Papers 1629, Iowa State University, Department of Economics.
  7. Kanbur, Ravi, 2006. "The economics of international aid," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier, Elsevier.
  8. Gerry Helleiner, 2002. "Local Ownership and Donor Performance Monitoring: New Aid Relationships in Tanzania?," Journal of Human Development and Capabilities, Taylor & Francis Journals, Taylor & Francis Journals, vol. 3(2), pages 251-261.
  9. Pritchett, Lant & Woolcock, Michael, 2004. "Solutions When the Solution is the Problem: Arraying the Disarray in Development," World Development, Elsevier, Elsevier, vol. 32(2), pages 191-212, February.
  10. Rosenstein-Rodan, Paul N., 1968. "The Consortia Technique," International Organization, Cambridge University Press, Cambridge University Press, vol. 22(01), pages 223-230, December.
  11. Azam, Jean-Paul & Laffont, Jean-Jacques, 2003. "Contracting for aid," Journal of Development Economics, Elsevier, Elsevier, vol. 70(1), pages 25-58, February.
  12. Brautigam, Deborah A & Knack, Stephen, 2004. "Foreign Aid, Institutions, and Governance in Sub-Saharan Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 255-85, January.
  13. 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.
  14. Torsvik, Gaute, 2005. "Foreign economic aid; should donors cooperate?," Journal of Development Economics, Elsevier, Elsevier, vol. 77(2), pages 503-515, August.
  15. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, Elsevier, vol. 64(2), pages 547-570, April.
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Cited by:
  1. Peter Nunnenkamp & Hannes Öhler & Rainer Thiele, 2013. "Donor coordination and specialization: did the Paris Declaration make a difference?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 149(3), pages 537-563, September.
  2. Öhler, Hannes & Nunnenkamp, Peter & Dreher, Axel, 2010. "Does conditionality work? A test for an innovative US aid scheme," Center for European, Governance and Economic Development Research Discussion Papers 103, University of Goettingen, Department of Economics.
  3. Nunnenkamp, Peter & Öhler, Hannes, 2010. "Aid Allocation through Various Official and Private Channels: Need, Merit and Self-Interest as Motives of German Donors," Proceedings of the German Development Economics Conference, Hannover 2010 15, Verein für Socialpolitik, Research Committee Development Economics.

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