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Can Process Conditionality Enhance Aid Effectiveness? The Role of Bureaucratic Interest and Public Pressure

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  • Michaelowa, Katharina
  • Hefeker, Carsten

Abstract

Can process conditionality really enhance poverty reduction in developing countries? This question is addressed in the framework of a politico-economic model considering political distortions both on the recipient and on the donor side. It turns out that process conditionality is a very useful tool to raise the welfare of the poor as long as the international aid organizations hold all necessary information to assess the political situation in recipient countries and to select the true representatives of the poor into a participatory process. If they do not hold this information or if other bureaucratic interests reduce their incentive to acquire this information, process conditionality loses its effectiveness in achieving the desired objective. --

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Bibliographic Info

Paper provided by Hamburg Institute of International Economics (HWWA) in its series HWWA Discussion Papers with number 239.

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Date of creation: 2003
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Handle: RePEc:zbw:hwwadp:26389

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Related research

Keywords: poverty reduction; process conditionality; political economy of international organizations;

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References

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  1. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, American Economic Association, vol. 90(4), pages 847-868, September.
  2. Alesina, Alberto & Dollar, David, 2000. " Who Gives Foreign Aid to Whom and Why?," Journal of Economic Growth, Springer, Springer, vol. 5(1), pages 33-63, March.
  3. Michaelowa, Katharina, 2003. " The Political Economy of the Enhanced HIPC-Initiative," Public Choice, Springer, Springer, vol. 114(3-4), pages 461-76, March.
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Cited by:
  1. Hefeker, Carsten, 2004. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," HWWA Discussion Papers, Hamburg Institute of International Economics (HWWA) 309, Hamburg Institute of International Economics (HWWA).

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