Aid effectiveness and donor behaviour

Karin Christiansen

CAPE, ODI

13th May 2004

Keeping it in perspective

• Aid and donors aren’t the cause of the problems that aid dependent countries face.

• But what if they aren’t part being part of the solution?

• …or even worse, preventing recipient countries from developing in a way that they can find their own solutions.

Strands in current debate

3 strands, linked but distinct:1. Aid instruments and aid effectiveness

(GBS vs projects);2. Ownership and govt commitment (PRSP

etc);3. Donors’ behaviour and the impact on

govt;– Consensus on good donorship principles– Identifying incentives and obstacles to

change

Good donorship principles(see Briefing Paper p. 1)

1. Country leadership and ownership.

2. Capacity building for the long term.

3. Harmonisation and simplification.

4. Transparency and information sharing.

5. Predictability of resources and conditionality.

6. Subsidiarity of decision making.

Donors failure of govts?

• Effects of donor behaviour are cumulative.

• Key aspect is the decision set/incentive structure this presents government:

a) Undermines prospects for domestic accountability;

b) Undermines decision-making and policy formation.

Research agenda• Impact of current donor practice: can we

measure or assess the cumulative effects?

• ‘Good donorship’ principles: are they the right ones; which are most relevant, and when?

• Operationalisation: what obstacles/ incentives can be identified?

What can be done to force change, by a) donors and b) governments?