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Donor Coordination and Specialization: Did the Paris Declaration Make a Difference?

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  • Peter Nunnenkamp
  • Hannes Öhler
  • Rainer Thiele

Abstract

We assess whether bilateral and multilateral donors of foreign aid specialized and coordinated their activities with other donors as agreed in the Paris Declaration of 2005. We account for donor heterogeneity, varying aid priorities and recipient characteristics in order to isolate changes in donor behaviour over time. Recent shifts in aid priorities, such as the rising importance of general budget support, have reduced the fragmentation of aid. Nevertheless, our results reveal that aid fragmentation persisted after the Paris Declaration and coordination among donors has even weakened

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1748.

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Length: 21 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:kie:kieliw:1748

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Keywords: aid allocation; fragmentation; Theil index; donor coordination; overlaps; Paris Declaration;

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References

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  1. Peter Nunnenkamp & Rainer Thiele, 2013. "Financing for Development: The Gap between Words and Deeds since Monterrey," Development Policy Review, Overseas Development Institute, vol. 31(1), pages 75-98, 01.
  2. Klasen, Stephan & Davies, Ronald B., 2011. "Of Donor Coordination, Free-Riding, Darlings, and Orphans: The dependence of bilateral aid commitments on other bilateral giving," Proceedings of the German Development Economics Conference, Berlin 2011 47, Verein für Socialpolitik, Research Committee Development Economics.
  3. Emmanuel Frot & Javier Santiso, 2009. "Herding in Aid Allocation," OECD Development Centre Working Papers 279, OECD Publishing.
  4. Arnab Acharya & Ana Teresa Fuzzo de Lima & Mick Moore, 2006. "Proliferation and fragmentation: Transactions costs and the value of aid," Journal of Development Studies, Taylor & Francis Journals, vol. 42(1), pages 1-21.
  5. Knack, Stephen & Rogers, F. Halsey & Eubank, Nicholas, 2010. "Aid quality and donor rankings," Policy Research Working Paper Series 5290, The World Bank.
  6. Knack, Stephen & Rahman, Aminur, 2004. "Donor fragmentation and bureaucratic quality in aid recipients," Policy Research Working Paper Series 3186, The World Bank.
  7. I�aki Aldasoro & Peter Nunnenkamp & Rainer Thiele, 2010. "Less aid proliferation and more donor coordination? The wide gap between words and deeds," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 920-940.
  8. William Easterly, 2007. "Are aid agencies improving?," Economic Policy, CEPR & CES & MSH, vol. 22, pages 633-678, October.
  9. Nancy Birdsall & Homi Kharas & Ayah Mahgoub & Rita Perakis, 2010. "Quality of Official Development Assistance Assessment," Working Papers id:3228, eSocialSciences.
  10. Bigsten, Arne, 2006. "Donor coordination and the uses of aid," Working Papers in Economics 196, University of Gothenburg, Department of Economics.
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Cited by:
  1. Öhler, Hannes, 2013. "Do Aid Donors Coordinate Within Recipient Countries?," Working Papers 0539, University of Heidelberg, Department of Economics.
  2. Andreas Fuchs & Peter Nunnenkamp & Hannes Öhler, 2013. "Why Donors of Foreign Aid Do Not Coordinate: The Role of Competition for Export Markets and Political Support," Kiel Working Papers 1825, Kiel Institute for the World Economy.

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