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Donor Competition For Aid Impact And Aid Fragmentation
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Book Synopsis Donor Competition for Aid Impact, and Aid Fragmentation by : Mr.Kurt Annen
Download or read book Donor Competition for Aid Impact, and Aid Fragmentation written by Mr.Kurt Annen and published by International Monetary Fund. This book was released on 2012-08-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors budgets. The paper presents empirical evidence consistent with theoretical results. These imply that, short of ending donors maximization of relative aid impact, agreements to better coordinate aid allocations are not implementable. Moreover, since policies to increase donor competition in terms of aid effectiveness risk reinforcing relativeness, they may well backfire, as any such reinforcement increases aid fragmentation.
Book Synopsis Aid Tying and Donor Fragmentation by : Stephen Knack
Download or read book Aid Tying and Donor Fragmentation written by Stephen Knack and published by . This book was released on 2017 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study tests two opposing hypotheses about the impact of aid fragmentation on the practice of aid tying. In one, when a small number of donors dominate the aid market in a country, they may exploit their monopoly power by tying more aid to purchases from contractors based in their own countries. Alternatively, when donors have a larger share of the aid market, they may have stronger incentives to maximize the development impact of their aid by tying less of it. Empirical tests strongly and consistently support the latter hypothesis. The key finding -- that higher donor aid shares are associated with less aid tying -- is robust to recipient controls, donor fixed effects and instrumental variables estimation. When recipient countries are grouped by their scores on corruption perception indexes, higher shares of aid are significantly related to lower aid tying only in the less-corrupt sub-sample. This finding is consistent with the argument that aid tying can be an efficient response by donors when losses from corruption may rival or exceed losses from tying aid. When aid tying is more costly, as proxied by donor country size and income, it is less prevalent. Aid tying is lower in the Least Developed Countries, consistent with the OECD Development Assistance Committee's recommendation to its members.
Book Synopsis Aid Tying and Donor Fragmentation by : Lodewijk Smets
Download or read book Aid Tying and Donor Fragmentation written by Lodewijk Smets and published by . This book was released on 2012 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The Fragmentation of Aid by : Timo Casjen Mahn
Download or read book The Fragmentation of Aid written by Timo Casjen Mahn and published by Springer. This book was released on 2016-08-31 with total page 374 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edited volume provides an assessment of an increasingly fragmented aid system. Development cooperation is fundamentally changing its character in the wake of global economic and political transformations and an ongoing debate about what constitutes, and how best to achieve, global development. This also has important implications for the setup of the aid architecture. The increasing number of donors and other actors as well as goals and instruments has created an environment that is increasingly difficult to manoeuvre. Critics describe today's aid architecture as 'fragmented': inefficient, overly complex and rigid in adapting to the dynamic landscape of international cooperation. By analysing the actions of donors and new development actors, this book gives important insights into how and why the aid architecture has moved in this direction. The contributors also discuss the associated costs, but also potential benefits of a diverse aid system, and provide some concrete options for the way forward.
Book Synopsis Donor Fragmentation and Bureaucratic Quality in Aid Recipients by : Stephen F. Knack
Download or read book Donor Fragmentation and Bureaucratic Quality in Aid Recipients written by Stephen F. Knack and published by World Bank Publications. This book was released on 2004 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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." This paper--a product of Public Services, Development Research Group--is part of a larger effort in the group to identify ways in which donors inadvertently undermine institutional development in aid recipient countries.
Book Synopsis Donor Fragmentation and Bureaucratic Quality in Aid Recipients by : Stephen Knack
Download or read book Donor Fragmentation and Bureaucratic Quality in Aid Recipients written by Stephen Knack and published by . This book was released on 2016 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.This paper - a product of Public Services, Development Research Group - is part of a larger effort in the group to identify ways in which donors inadvertently undermine institutional development in aid recipient countries.
Book Synopsis Does Aid Contribute to Sustainable Development Goals? Empirical Evidence from a Donor Comparison by : Paul Faust
Download or read book Does Aid Contribute to Sustainable Development Goals? Empirical Evidence from a Donor Comparison written by Paul Faust and published by Anchor Academic Publishing. This book was released on 2018 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: No Poverty, Zero Hunger, Good Health, Well-being and Quality Education – these are the first priorities of the Sustainable Development Goals (SDGs) that were launched jointly by all UN Member States on January 1, 2016. The agenda of this agreement contains 17 main goals with a total of 169 targets and is dedicated to improving global living conditions and to address issues of environmental and economical sustainability with a planning horizon through to 2030. Development assistance from economically advanced countries, also referred to as aid, is one of the major means to provide financing for countries with less developed economies that face severe social problems, and which often cannot handle these problems alone. Previous studies have shown, however, that aid is ineffective and recommend comprehensive restructuring of the common aid practices. Investigations that analyse the pattern of aid flows find, moreover, that granting aid to certain recipient countries cannot only be explained by altruistic motives. They show that several strategic or non-strategic reasons have a high explanatory power for individual donor aid allocation. Against this background, the present study explores aid effectiveness of distinct bilateral donors. This is achieved by a large-scale panel data analysis applying per-capita economic growth, infant mortality and primary growth as indicators for measuring the contribution of aid to achieving the different SDGs.
Book Synopsis Diversity Trumps Quantity by : Sebastian Ziaja
Download or read book Diversity Trumps Quantity written by Sebastian Ziaja and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the effects of donor fragmentation on democratization. The presence of a large number of donors has been shown to impact negatively on bureaucracy quality and economic growth in the recipient country. But does donor fragmentation also affect democratization? I argue that the effect differs depending on the type of aid: Fragmented general aid has a negative impact on democratization, because it erodes some of the prerequisites of democracy. Fragmented democracy aid, however, has a positive impact on democratization, because diversity on the donor side provides choice to the multitude of local actors involved in the process, increasing the viability of resulting institutions. A highly concentrated donor community would lead to the imposition of an institutional blueprint, designed in advance and not adapted to the needs of the recipient society. These propositions are tested with data for 135 countries over the period 1990 to 2008. The temporal dynamics are examined with an error correction model. The causal mechanism is traced using the case of Ghana. Empirical evidence suggests that fragmented general aid indeed has a negative impact on democracy. But the presence of a large number of donors providing democracy aid has, contrary to common wisdom, a positive impact. This impact is independent of the amount of aid spent: The diversity of democracy aid trumps the quantity of democracy aid.
Book Synopsis Foreign Aid and Recurrent Cost by : Yutaka Arimoto
Download or read book Foreign Aid and Recurrent Cost written by Yutaka Arimoto and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent empirical studies reveal that effectiveness of aid on growth is ambiguous. The authors consider aid proliferation - excess aid investment relative to recurrent cost - as a potential cause that undermines aid effectiveness, because aid projects can only produce sustainable benefits when sufficient recurrent costs are disbursed. They consider the donor's budget support as a device to supplement the shortage of the recipient's recurrent cost and to alleviate the misallocation of inputs. However, when donors have self-interested preferences for the success of their own projects over those conducted by others, they provide insufficient budget support relative to aid, which results in aid proliferation. Moreover, aid proliferation is shown to be worsened by the presence of more donors.
Book Synopsis Aid Fragmentation and Corruption by : Travers Child
Download or read book Aid Fragmentation and Corruption written by Travers Child and published by . This book was released on 2020 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Effectiveness of development aid is widely perceived to suffer in the presence of multiple donors with overlapping responsibilities. We test existing theory on aid fragmentation by studying aid provision under numerous donors throughout Afghanistan from 2006-2009. Leveraging granular military data on aid, conflict, corruption, and public opinion, we conduct the first micro-level analysis of aid fragmentation. When delivered by a single donor, aid reduces conflict, curtails corruption, and boosts public opinion. But under donor fragmentation, the benefits of aid are significantly reduced. We are able to distinguish among various causal pathways underlying these heterogeneous effects. Our findings are robust to accounting for a battery of novel observable confounding factors as well as a computational bounding exercise used to assess potential bias arising from unobserved factors. Our evidence suggests fragmentation facilitates corruption and erodes the ability of development aid to win 'hearts and minds' in the fight against insurgents. This study yields potentially actionable insights about improving government policy and public welfare outcomes in fragile and weakly institutionalized settings.
Book Synopsis Effects of Donor Proliferation in Development Aid for Health on Health Program Performance by : Jennifer Prah Ruger
Download or read book Effects of Donor Proliferation in Development Aid for Health on Health Program Performance written by Jennifer Prah Ruger and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Development aid for health increased dramatically during the past two decades, raising concerns about inefficiency and lack of coherence among the growing number of global health donors. However, we lack a framework for how donor proliferation affects health program performance to inform theory-based evaluation of aid effectiveness policies. A review of academic and gray literature was conducted. Data were extracted from the literature sample on study design and evidence for hypothesized effects of donor proliferation on health program performance, which were iteratively grouped into categories and mapped into a new conceptual framework. In the framework, increases in the number of donors are hypothesized to increase inter-donor competition, transaction costs, donor poaching of recipient staff, recipient control over aid, and donor fragmentation, and to decrease donors' sense of accountability for overall development outcomes. There is mixed evidence on whether donor proliferation increases or decreases aid volume. These primary effects in turn affect donor innovation, information hoarding, and aid disbursement volatility, as well as recipient country health budget levels, human resource capacity, and corruption, and the determinants of health program performance. The net effect of donor proliferation on health will vary depending on the magnitude of the framework's competing effects in specific country settings. The conceptual framework provides a foundation for improving design of aid effectiveness practices to mitigate negative effects from donor proliferation while preserving its potential benefits.
Book Synopsis Donor Fragmentation and Bureaucratic Quality in Aid Recipients by : Stephen Knack
Download or read book Donor Fragmentation and Bureaucratic Quality in Aid Recipients written by Stephen Knack and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: 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."
Book Synopsis Why Donors of Foreign Aid Do Not Coordinate by : Andreas Fuchs
Download or read book Why Donors of Foreign Aid Do Not Coordinate written by Andreas Fuchs and published by . This book was released on 2015 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Development assistance has been criticized for a lack of coordination between aid donors. This paper argues that competition for export markets and political support prevents donor countries from closer coordination of aid activities. To test these hypotheses, we perform logit and fractional logit estimations for a large sample of recipient countries and aid activities since the early 1970s. Our empirical results reveal that export competition between donors is a major impediment to aid coordination. Tough less conclusive, we also find some evidence that donors' competition over political support prevents them from coordinating aid activities more closely.
Book Synopsis Re-Inventing Africa's Development by : Jong-Dae Park
Download or read book Re-Inventing Africa's Development written by Jong-Dae Park and published by Springer. This book was released on 2018-12-31 with total page 456 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access book analyses the development problems of sub-Sahara Africa (SSA) from the eyes of a Korean diplomat with knowledge of the economic growth Korea has experienced in recent decades. The author argues that Africa's development challenges are not due to a lack of resources but a lack of management, presenting an alternative to the traditional view that Africa's problems are caused by a lack of leadership. In exploring an approach based on mind-set and nation-building, rather than unity – which tends to promote individual or party interests rather than the broader country or national interests – the author suggests new solutions for SSA's economic growth, inspired by Korea's successful economic growth model much of which is focused on industrialisation. This book will be of interest to researchers, policymakers, NGOs and governmental bodies in economics, development and politics studying Africa's economic development, and Korea's economic growth model.
Book Synopsis Are Emerging Donors Engaging in Poor Foreign Aid Practices? A Comparison of Traditional Versus Non-Traditional Aid Agencies by : Liya Palagashvili
Download or read book Are Emerging Donors Engaging in Poor Foreign Aid Practices? A Comparison of Traditional Versus Non-Traditional Aid Agencies written by Liya Palagashvili and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the rapid growth of emerging donors, these non-traditional donors are historically left out of the discussion on aid effectiveness. In this paper, we provide the first full evaluation of aid agency best practices. We rank and compare DAC (Development Assistance Committee) donors, emerging non-DAC donors, multilateral, and UN agencies in the following five best practice categories: transparency, overhead costs, aid specialization, selective allocation, and effective delivery channels. Contrary to the impression that emerging donors engage in worse practices, we find that non-DAC agencies rank similarly to DAC donors: both groups are equally poor performers. Emerging donors engage in less aid fragmentation and do not use ineffective delivery channels. Traditional DAC donors, however, are more transparent. Overall, we find that multilateral agencies and UN donors outperform both DAC and non-DAC bilateral agencies. Collectively, our results suggest that most aid donors do not meet their own standards for best practices, and this finding is not unique to emerging donors. We highlight how our results reflect the broader political economy of aid allocation.
Download or read book Foreign Aid and Recurrent Cost written by and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Donor Competition and Cooperation in Foreign Aid Allocation by : Ellen A. Cutrone
Download or read book Donor Competition and Cooperation in Foreign Aid Allocation written by Ellen A. Cutrone and published by . This book was released on 2012 with total page 654 pages. Available in PDF, EPUB and Kindle. Book excerpt:
