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International Coordination and the Effectiveness of Aid

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  • Bigsten, Arne
  • Tengstam, Sven

Abstract

This paper seeks to quantify the effects of improved donor coordination on aid effectiveness. Empirical estimates are first provided of the reductions in transaction costs that can be achieved by better donor coordination via concentration to fewer partner countries and a shift from project aid to program-based approaches. Further estimates are presented showing how much could be gained in terms of poverty reduction by optimizing aid allocation across countries. The potential poverty reduction would be huge, but there are severe political implementation constraints. The paper concludes that much could be gained in terms of aid effectiveness from improved donor coordination.

Suggested Citation

  • Bigsten, Arne & Tengstam, Sven, 2015. "International Coordination and the Effectiveness of Aid," World Development, Elsevier, vol. 69(C), pages 75-85.
  • Handle: RePEc:eee:wdevel:v:69:y:2015:i:c:p:75-85
    DOI: 10.1016/j.worlddev.2013.12.021
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    Cited by:

    1. Kohnert, Dirk, 2015. "Donor’s double talk undermines African agency : Comparative study of civic agency in Burkina Faso and Togo," EconStor Conference Papers 120921, ZBW - German National Library of Economics.
    2. Peter Nunnenkamp & Albena Sotirova & Rainer Thiele, 2016. "Do Aid Donors Specialize and Coordinate within Recipient Countries? The case of Malawi," Development Policy Review, Overseas Development Institute, vol. 34(6), pages 831-849, November.
    3. repec:eee:epplan:v:68:y:2018:i:c:p:225-232 is not listed on IDEAS
    4. repec:eee:wdevel:v:105:y:2018:i:c:p:59-69 is not listed on IDEAS
    5. Leiderer, Stefan, 2013. "Donor Coordination for Effective Government Policies? Implementation of the New Aid Effectiveness Agenda in Health and Education in Zambia," WIDER Working Paper Series 049, World Institute for Development Economic Research (UNU-WIDER).
    6. Nordtveit, Ingvild, 2014. "Does better governance and commitment to development attract general budget support?," Working Papers in Economics 02/14, University of Bergen, Department of Economics.
    7. Fløgstad, Cathrin & Hagen, Rune Jansen, 2017. "Aid Dispersion: Measurement in Principle and Practice," World Development, Elsevier, vol. 97(C), pages 232-250.
    8. repec:spr:revint:v:12:y:2017:i:2:d:10.1007_s11558-017-9275-2 is not listed on IDEAS
    9. Alfonso Carfora & Monica Ronghi & Giuseppe Scandurra, 2017. "The effect of Climate Finance on Greenhouse Gas Emission: A Quantile Regression Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 185-199.
    10. repec:eee:wdevel:v:99:y:2017:i:c:p:320-334 is not listed on IDEAS
    11. repec:bla:devpol:v:35:y:2017:i:4:p:531-548 is not listed on IDEAS
    12. repec:bla:devpol:v:35:y:2017:i::p:o96-o117 is not listed on IDEAS

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