Working Papers in Economics
Donor coordination and the uses of aid
Abstract: The paper discusses donor coordination and its
implications for the uses of aid. The paper starts by specifying a simple
framework for the discussion, and then reviews the theoretical literature.
It then provides some data on donor proliferation and discusses how
coordination modalities have evolved over time, in particular during the
current phase with partnership and ownership. The following sections
summarize the limited empirical evidence available on the impact of
coordination on transaction costs and public-sector management and
governance. A key issue with regard to the latter is how donor coordination
affects the incentives of the recipient government. The paper concludes
with a review of the policy debate and some policy conclusions.
Keywords: Aid; donor coordination; transaction costs; incentive effects; (follow links to similar papers)
JEL-Codes: F35; O19; (follow links to similar papers)
26 pages, February 28, 2006
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