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Bureaucratic incentives, path dependence, and foreign aid: An empirical institutional analysis of irrigation in the Philippines

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  • Eduardo Araral

Abstract

At least 25 developing countries are embarking on irrigation governance reforms to address the persistent problem of poor irrigation performance. Some scholars suggest that the patterns of construction, deterioration, rehabilitation, and modernization commonly found among irrigation agencies in these countries are rational because of the time inconsistency problem of information. I argue instead, using panel data from the Philippines, that the problem of poor performance is linked to inherent incentive problems faced by public bureaucracies, how these incentives became entrenched in the path dependence of irrigation development, and how these were reinforced by incentives embedded in irrigation aid, particularly by the moral hazard problem and the fungibility of irrigation aid. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Eduardo Araral, 2005. "Bureaucratic incentives, path dependence, and foreign aid: An empirical institutional analysis of irrigation in the Philippines," Policy Sciences, Springer;Society of Policy Sciences, vol. 38(2), pages 131-157, September.
    • Handle: RePEc:kap:policy:v:38:y:2005:i:2:p:131-157
    DOI: 10.1007/s11077-005-2309-2
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    2. Nadeem Ul Haque & Faheem Jehangir Khan (ed.), 2022. "RASTA Local Research, Local Solutions: Political Economy Of Development Reform, Volume VI," PIDE Books, Pakistan Institute of Development Economics, number 2022:6.
    3. Senanayake, Nari & Mukherji, Aditi & Giordano, Mark, 2015. "Re-visiting what we know about Irrigation Management Transfer: A review of the evidence," Agricultural Water Management, Elsevier, vol. 149(C), pages 175-186.
    4. Ricks, Jacob I., 2016. "Building Participatory Organizations for Common Pool Resource Management: Water User Group Promotion in Indonesia," World Development, Elsevier, vol. 77(C), pages 34-47.
    5. Wai Lam & Elinor Ostrom, 2010. "Analyzing the dynamic complexity of development interventions: lessons from an irrigation experiment in Nepal," Policy Sciences, Springer;Society of Policy Sciences, vol. 43(1), pages 1-25, March.
    6. Doreen Ingosan Allasiw & Toshinori Tanaka & Takashi Mino, 2017. "Costly Barriers to Sustainable Institutions: Empirical Evidence from State-Reinforced Management of a Communal Irrigation System in the Philippines," Sustainability, MDPI, vol. 9(5), pages 1-21, May.

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