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How To Spend It: The Organization of Public Spending and Aid Effectiveness

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  • Paul Collier

Abstract

As aid diminishes in importance, donors need a capacity that enables governments to improve the quality of their public spending. In this study I suggest three such organizational innovations: independent ratings of spending systems, Independent Public Service Agencies, and Sovereign Development Funds. These constitute a new donor instrument of influencing the modalities of public spending, alongside the volume of aid. With an additional instrument donors can escape the dilemma of having more objectives than instruments. How aid is spent may become more important than how much of it is spent.

Suggested Citation

  • Paul Collier, 2012. "How To Spend It: The Organization of Public Spending and Aid Effectiveness," WIDER Working Paper Series wp-2012-005, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2012-005
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    File URL: https://www.wider.unu.edu/sites/default/files/WP%202012-05.pdf
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    Cited by:

    1. Guillaumont, Patrick & Guillaumont Jeanneney, Sylviane & Wagner, Laurent, 2017. "How to Take into Account Vulnerability in Aid Allocation Criteria and Lack of Human Capital as Well: Improving the Performance Based Allocation," World Development, Elsevier, vol. 90(C), pages 27-40.
    2. Sam Jones & John Page & Abebe Shimeles & Finn Tarp & Gary Fields, 2015. "Aid, Growth and Jobs," African Development Review, African Development Bank, vol. 27(S1), pages 5-16, October.
    3. Fields, Gary S., 2012. "Aid, Growth, and Jobs," WIDER Working Paper Series 086, World Institute for Development Economic Research (UNU-WIDER).
    4. Rachel M. Gisselquist, 2014. "Aid and Institution-Building in Fragile States," The ANNALS of the American Academy of Political and Social Science, , vol. 656(1), pages 6-21, November.
    5. repec:unu:wpaper:wp2012-86 is not listed on IDEAS

    More about this item

    Keywords

    Economic assistance and foreign aid; Public expenditures; Public welfare;
    All these keywords.

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