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Aid and Trust in Country Systems

Knack, Stephen; Eubank, Nicholas
Fonte: Banco Mundial Publicador: Banco Mundial
Relevância na Pesquisa
46.47%
The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. A consensus view holds that country systems are strengthened when donors trust recipients to manage aid funds, but undermined when donors manage aid through their own separate parallel systems. This paper provides an analytical framework for understanding donors decisions to trust in country systems or instead to micro-manage aid using their own systems and procedures. Where country systems are sufficiently weak, the development impact of aid is reduced by donors reliance on them. Trust in country systems will be sub-optimal, however, if donors have multiple objectives in aid provision rather than a sole objective of maximizing development outcomes. Empirical tests are conducted using data from an OECD survey designed to monitor progress toward Paris Declaration goals. Trust in country systems is measured in three ways: use of the recipient s public financial management systems, use of direct budget support...

Individual and Country-Level Factors Affecting Support for Foreign Aid

Paxton, Pamela; Knack, Stephen
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
46.46%
In recent years donor countries have committed to dramatic increases in the supply of foreign aid to developing countries. Meeting and sustaining such commitments will require sufficient support among donor country voters and taxpayers. The determinants of public opinion in donor countries on foreign aid have received little attention. This paper examines attitudes to foreign aid with a large, multi-level, cross-national study. It outlines a theoretical rationale for support for foreign aid, discussing the importance of both individual factors and economic and social structures. The theory is tested with multi-level models, including both individual-level and country-level variables to predict positive attitudes. Two datasets are used to measure attitudes in donor countries: (1) the 1995 World Values Survey has information from approximately 6,000 individuals in nine countries and asks a rich battery of questions at the individual-level, and (2) the 2002 Gallup "Voice of the People" survey asks fewer questions of individuals but includes 17 donor countries. Using both surveys combines their distinct strengths and allows tests of individual and national-level theories across disparate samples. The results generally support the predictions that attitudes toward aid are influenced by religiosity...

What Is Effective Aid? How Would Donors Allocate It?

Kenny, Charles
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
EN_US
Relevância na Pesquisa
46.48%
There are significant weaknesses in some of the traditional justifications for assuming that aid will foster development. This paper looks at what the cross-country aid effectiveness literature and World Bank Operations Evaluation Department reviews have suggested about effective aid, first in terms of promoting income growth, and then for promoting other goals. This review forms the basis for a discussion of recommendations to improve aid effectiveness and a discussion of effective aid allocation. Given the multiple potential objectives for aid, there is no one right answer. However, it appears that there are a number of reforms to aid practices and distribution that might help to deliver a more significant return to aid resources. We should provide aid where institutions are already strong, where they can be strengthened with the help of donor resources, or where they can be bypassed with limited damage to existing institutional capacity. The importance of institutions to aid outcomes, as well as the fungibility of aid flows, suggests that programmatic aid should be expanded in countries with strong institutions, while project aid should be supported based on its ability to transfer knowledge and test new practices and support global public good provision rather than (merely) as a tool of financial resource transfer. The importance of institutions also suggests that we should be cautious in our expectations regarding the results of increased aid flows.

Delivering Aid Differently : Lessons from the Field

Fengler, Wolfgang; Kharas, Homi
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
56.56%
Delivering aid differently was written at a time when the future of foreign aid is being fiercely debated. The book includes an overview; case studies of Aceh/Indonesia, Cambodia, Ethiopia, Kenya, Pakistan, and Tajikistan; and thematic chapters on joint assistance strategies, information systems, and humanitarian aid. This new aid environment is characterized by three important shifts that have emerged in the last decade: 1) strong growth in many developing countries has redefined the role of aid; 2) the donor landscape has changed fundamentally over the last decade, a trend that will likely accelerate in the coming years; and 3) innovation, especially in information technology, has started to reshape development aid. Knowledge transfer has become as important as financial aid, and combining the two can be remarkably transformative. The author advocates two institutional changes. First, authors encourage the development of one (or more) geographically based development authorities within poor countries...

Thinking about Aid Predictability

Andrews, Matthew; Wilhelm, Vera
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
56.45%
Researchers are giving more attention to aid predictability. In part, this is because of increases in the number of aid agencies and aid dollars and the growing complexity of the aid community. A growing body of research is examining key questions: Is aid unpredictable? What causes unpredictability? What can be done about it? This note draws from a selection of recent literature to bring some clarity to the basic story emerging. The authors start by presenting evidence from the literature on various problems with aid flows. Then authors discuss how researchers use terms like volatility and unpredictability when discussing aid predictability; the suggest that these concepts can be sharpened by introducing two new concepts: expectations and reliability. These new concepts are particularly useful in conceptualizing the problems of unpredictable flows in government budget processes. This approach allows a basic analysis of how timing and different types of aid affect predictability, and the implications for policy making.

The Market for Aid : Understanding Aid by Looking Forward and Looking Back

Harford, Tim; Klein, Michael
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
56.43%
The market for aid is changing. These days donors use a far greater array of instruments than in the past, and operate in a context of far larger private financial flows. Poor countries are growing richer, but there are legitimate doubts about whether the aid industry deserves credit. Measurement of the effectiveness of aid has not yet produced some of the results that would really help, such as credible ratings of aid agencies or rigorous randomized trials of specific programs. This information might pull the aid debate away from minimizing the costs of aid competition and toward trying to maximize the benefits: widespread experimentation and innovation.

Aid Effectiveness : Can Aid Agencies Be Smarter Than the Invisible Hand?

Klein, Michael; Harford, Tim
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
66.57%
Private financial flows such as foreign direct investment seem toencourage economic growth and relieve poverty in part because theycreate excellent incentives for transferring know-how and in partbecause they are subject to a stern market test that ensures they areallocated and monitored carefully. For aid flows, not automaticallysubject to these disciplines, it is difficult to be as effective. ThisNote argues that aid agencies, by learning what makes private flowsso effective, can bring better aid to the poorest.

Aid and the Resource Curse : How Can Aid Be Designed to Preserve Institutions?

Harford, Tim; Klein, Michael
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
46.24%
Many studies have found that countries with abundant natural resources grow more slowly than those without a phenomenon often known as the resource curse or the curse of oil. Some development specialists are concerned that foreign aid may also cause a resource curse. Recent research is not conclusive, but certainly does not rule out the possibility. This Note suggests ways to avoid this risk and urges more attention be devoted to it.

The Future of Aid 1 : The Rise of the Undergrowth

Harford, Tim; Klien, Michael; Tilmes, Klaus
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Relevância na Pesquisa
46.25%
This note considers the future of aid from the perspective of the 2005-2030 time frame. It offers a possible scenario for the future, with booming private remittances and nongovernmental aid flows put to innovative uses, eclipsing a less agile, more politically driven official aid industry. A companion note (report 32125) offers a second scenario. The notes were written in the spirit of plausible stories abougt the future to encourage thinking about possible responses.

Aid, Policies, and Growth : Revisiting the Evidence

Burnside, Craig; Dollar, David
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
EN_US
Relevância na Pesquisa
46.29%
The authors revisit the relationship between aid and growth using a new data set focusing on the 1990s. The evidence supports the view that the impact of aid depends on the quality of state institutions and policies. The authors use an overall measure of institutions and policies popular in the empirical growth literature. The interaction of aid and institutional quality has a robust positive relationship with growth that is strongest in instrumental variable regressions. There is no support for the competing hypothesis that aid has the same positive effect everywhere. The authors also show that in the 1990s the allocation of aid to low-income countries favored those with better institutional quality. This "selectivity" is sensible if aid in fact is more productive in sound institutional and policy environments. The cross-country evidence on aid effectiveness is supported by other types of information as well: case studies, project-level evidence, and opinion polls support the view that corrupt institutions and weak policies limit the impact of financial assistance for development.

The Challenges of Australian Official Development Assistance to Burma

Williams, Megan
Fonte: Universidade Nacional da Austrália Publicador: Universidade Nacional da Austrália
Tipo: Relatório
Relevância na Pesquisa
46.7%
On May 2, 2008, millions of people across the Irrawaddy Delta in Burma took shelter as flood waters surged and winds of up to 200km/h carved a path of destruction, destroying villages and flooding agricultural fields throughout the Delta. The worst disaster ever recorded in Burma, Cyclone Nargis killed an estimated 140,000 people and displaced at least 800,000 more. The world watched, stunned, at not only the extent of devastation caused by the cyclone, but by the shockingly inadequate response of the Burmese regime who failed to launch any substantial relief effort and moved to block many private donors and international aid agencies from the worst affected areas. For the international community this brought to the fore the complicated environment within which aid agencies operate in Burma. Poverty in Burma is widespread. More than 30 percent of the population lives in acute poverty with an estimated 90 percent of the country spending three quarters of income, less than 65c, on food. What makes this poverty more intense is the low level of Official Development Assistance (ODA) the country has received despite the obvious need. After a brutal crackdown on pro-democracy protests in 1988 and the ruling regime's refusal to recognise the results of democratic elections in 1990...

Determinants of International Emergency Aid : Humanitarian Need Only?

Fink, Guenther; Redaelli, Silvia
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Publications & Research :: Policy Research Working Paper
ENGLISH
Relevância na Pesquisa
46.45%
The authors use an original data set covering more than 400 recent natural disasters to analyze the determinants of international emergency aid. Although humanitarian need is a major determinant of emergency relief payments, the results imply that political and strategic factors play a crucial role in the emergency aid allocation. On average, donor governments favor smaller, geographically closer, and oil exporting countries, and display significant biases in favor of politically less aligned countries as well as toward their former colonies. The authors also test and reject the independence of donors' aid decisions, finding strong evidence for bandwagon effects in humanitarian assistance.

Donor Fragmentation and Bureaucratic Quality in Aid Recipients

Knack, Stephen; Rahman, Aminur
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
46.53%
This paper analyzes the impact of donor fragmentation on the quality of government bureaucracy in aid-recipient nations. A formal model of a donor's decision to hire government administrators to manage donor-funded projects predicts that the number of administrators hired declines as the donor's share of other projects in the country increases, and as the donor's "altruism" (concern for the success of other donors' projects) increases. These hypotheses are supported by cross-country empirical tests using an index of bureaucratic quality available for aid-recipient nations over the 1982-2001 period. Declines in bureaucratic quality are associated with higher donor fragmentation (reflecting the presence of many donors, each with a small share of aid), and with smaller shares of aid coming from multilateral agencies, a proxy for donor "altruism."

Interactions Among Donors' Aid Allocations : Evidence from an Exogenous World Bank Income Threshold

Knack, Stephen; Xu, Lixin Colin; Zou, Ben
Fonte: World Bank Group, Washington, DC Publicador: World Bank Group, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
46.45%
This study investigates the effects of the World Bank's exogenously-determined income threshold for eligibility for concessionary International Development Association (IDA) loans on the allocations of bilateral donors. The donors might interpret the World Bank's policies and allocations across recipients as informative signals of where their own aid might be used most effectively. Alternatively, other donors might compensate for reduced IDA allocations by increasing their own aid. This paper shows that the signaling effect dominates any crowding out effects. The analysis uses panel data with country fixed effects and finds that aid from the bilateral donor countries is significantly reduced after countries cross the IDA income cutoff, controlling for other determinants of aid. Allocations by other donors are not sensitive to actual IDA disbursements, only to the IDA income threshold. Because crossing the income cutoff for eligibility significantly reduces aid levels from other donors as well as from the World Bank...

Aid Quality and Donor Rankings

Knack, Stephen; Rogers, F. Halsey; Eubank, Nicholas
Fonte: Banco Mundial Publicador: Banco Mundial
Tipo: Publications & Research :: Policy Research Working Paper
ENGLISH
Relevância na Pesquisa
46.29%
This paper offers new measures of aid quality covering 38 bilateral and multilateral donors, as well as new insights about the robustness and usefulness of such measures. The 2005 Paris Declaration on Aid Effectiveness and the follow-up 2008 Accra Agenda for Action have focused attention on common donor practices that reduce the development impact of aid. Using 18 underlying indicators that capture these practices -- derived from the OECD-DAC's Survey for Monitoring the Paris Declaration, the new AidData database, and the DAC aid tables -- the authors construct an overall aid quality index and four coherently defined sub-indexes on aid selectivity, alignment, harmonization, and specialization. Compared with earlier indicators used in donor rankings, this indicator set is more comprehensive and representative of the range of donor practices addressed in the Paris Declaration, improving the validity, reliability, and robustness of rankings. One of the innovations is to increase the validity of the aid quality indicators by adjusting for recipient characteristics...

Beyond Aid : New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa

Ratha, Dilip; Mohapatra, Sanket; Plaza, Sonia
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH
Relevância na Pesquisa
46.41%
Given Sub-Saharan Africa's enormous resource needs for growth, poverty reduction, and other Millennium Development Goals, the development community has little choice but to continue to explore new sources of financing, innovative private-to-private sector solutions, and public-private partnerships to mobilize additional international financing. The paper suggests several new instruments for improving access to capital. An analysis of country creditworthiness suggests that many countries in the region may be more creditworthy than previously believed. Establishing sovereign rating benchmarks and credit enhancement through guarantee instruments provided by multilateral aid agencies would facilitate market access. Creative financial structuring, such as the International Financing Facility for Immunization, would help front-load aid commitments, although these may not result in additional financing in the long run. Preliminary estimates suggest that Sub-Saharan African countries can potentially raise USD 1-3 billion by reducing the cost of international migrant remittances...

Increasing Selectivity of Foreign Aid, 1984-2002

Dollar, David; Levin, Victoria
Fonte: World Bank, Washington, D.C. Publicador: World Bank, Washington, D.C.
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
ENGLISH; EN_US
Relevância na Pesquisa
56.7%
The authors examine the allocation of foreign aid by 41 donor agencies, bilateral and multilateral. Their policy selectivity index measures the extent to which a donor's assistance is targeted to countries with sound institutions and policies, controlling for per capita income and population. The poverty selectivity index analogously looks at how well a donor's assistance is targeted to poor countries, controlling for institutional and policy environment as measured by a World Bank index. The authors' main finding is that the same group of multilateral and bilateral aid agencies that are very policy focused are also very poverty focused. The donors that appear high up in both rankings are the World Bank's International Development Association, the International Monetary Fund's Enhanced Structural Adjustment Facility, Denmark, the United Kingdom, Norway, Ireland, and the Netherlands. As a robustness check the authors alternatively use institutional quality measures independent of the World Bank and find the same pattern of selectivity. They also find that policy selectivity is a new phenomenon: in the 1984-89 period...

Taking Another Look at Multilateral Aid Flows: Reconsidering the Dynamics of the U.S.'s Strategic Use of Development Aid

Goodman, Jared
Fonte: Universidade Duke Publicador: Universidade Duke
Publicado em 25/04/2011 EN
Relevância na Pesquisa
46.29%
Previous studies in the development aid literature have concluded that bilateral aid flows have been dominated by strategic objectives of major donors. Similar analysis of multilateral aid flows has determined that these allocations are more sensitive to economic need and quality of institutions and policy of the recipient country. A consensus has emerged that all bilateral aid is strategically driven while multilateral aid is independent of these political pressures. This paper challenges these conventional notions of the different aid types by analyzing allocation decisions from U.S. bilateral and multilateral aid agencies. It finds that strategic considerations influence both bilateral and multilateral aid. Donor influence over multilateral aid allocations requires a rethinking of how strategic aid is pursued. Improvements to the models of aid flows are offered, and a preliminary empirical analysis is attempted. It is found that the dynamics of strategic uses of aid are more complex that previous studies have concluded. The impact of these findings on the flows and efficacy of aid is discussed.; Honors Thesis, Department of Economics

Aiding the Environment: the Australian Development Agencys experience of implementing an environmental management system

Keen, Meg; Sullivan, Majorie
Fonte: Elsevier Publicador: Elsevier
Tipo: Artigo de Revista Científica
Relevância na Pesquisa
46.37%
Aid agencies, like commercial businesses, are increasingly concerned with incorporating sound environmental management into their operations. Different approaches are being used to integrate sustainability into development assistance to ensure that environmental impacts are assessed and managed. One approach being used by AusAID, the Australian aid agency, is to implement an environmental management system (EMS) across program and project areas. This paper examines how AusAID has adapted the EMS approach to suit aid agency operations, and some of the lessons from the Australian experience.

Understanding how the identity of international aid agencies and their approaches to security are mutually shaped

Renouf, Jean S.
Fonte: London School of Economics and Political Science Thesis Publicador: London School of Economics and Political Science Thesis
Tipo: Thesis; NonPeerReviewed Formato: application/pdf
Publicado em //2011 EN
Relevância na Pesquisa
46.44%
The objective of the thesis is to study, through a critical constructivist analysis, the conception and practice of security by humanitarian international aid agencies (IAAs), with particular reference to their relation with private military and security companies (PMSCs). The research provides a qualitative analysis of humanitarian security, which is defined as the practice of safely accessing vulnerable populations for humanitarian purposes. Its methodology relies on semi-structured interviews, including in Afghanistan and Haiti; participant observation; and a literature review. The thesis‘ critical constructivist approach implies studying the co-constitution of aid organizations‘ identity and interests. It argues that IAAs‘ identity and approaches to security are mutually shaped. It does so by first highlighting dominant discourses framing aid agencies‘ identity and processes by which particular views are reproduced. It then identifies the dominant representations in security management and reveals how they relate to IAAs‘ identity. The thesis defines three ideal–types of IAAs (Deontological, Solidarist and Utilitarian) and of PMSCs (Guarding, Unarmed, and Weaponised). This typology allows a dissecting of IAAs‘ different conceptions and practices of security...