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The role of incentives and evaluations in enhancing development effectiveness

Author

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  • Eduardo Wiesner

    () (Universidad de los Andes)

Abstract

A key issue today is how to improve the effectiveness of policies whose objective is poverty reduction and decentralisation. This paper argues that a major problem is the (intentionally and unintentionally) flawed use of incentives in policy design and execution. The lack of appropriate incentives (associated, for example, with unconditional grants) can lead to what are characterised as “bad” incentives, which favour rent-seeking rather than efficient public and aid programme expenditures. It concludes that independent demand-driven evaluation can play a major role in improving incentives

Suggested Citation

  • Eduardo Wiesner, 2004. "The role of incentives and evaluations in enhancing development effectiveness," Colombian Economic Journal, Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Universidad Externado de Colombia, Universidad Nacional de Colombia, vol. 2(1), pages 13-31, November.
  • Handle: RePEc:cej:primer:v:2:y:2004:i:1:p:13-31
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    File URL: http://www.fce.unal.edu.co/cej/number2/1-Wiesner.pdf
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    Keywords

    macroeconomic policy; government programmes; economic development;

    JEL classification:

    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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