World Bank - Strengthening the effectiveness of aid: lessons for donors
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Strengthening the Effectiveness of Aid : Lessons for Donors Development in Practice (Washington, D.C.)
author
:
publisher
:
World Bank
isbn10 | asin
:
0821332228
print isbn13
:
9780821332221
ebook isbn13
:
9780585224350
language
:
English
subject
Economic assistance.
publication date
:
1995
lcc
:
HC60.S7998 1995eb
ddc
:
338.9/1
subject
:
Economic assistance.
Page i
Strengthening the Effectiveness of Aid
Lessons for Donors
THE WORLD BANK WASHINGTON, D. C.
Page ii
1995 The International Bank for Reconstruction and Development / THE WORLD BANK
All rights reserved Manufactured in the United States of America First printing May 1995
The Development in Practice series publishes reviews of the World Bank's activities in different regions and sectors. It lays particular emphasis on the progress that is being made and on the policies and practices that hold the most promise of success in the effort to reduce poverty in the developing world.
This report is a study by the World Bank's staff, and the judgments made herein do not necessarily reflect the views of the Board of Executive Directors or of the governments they represent.
Cover photo: Curt Carnemark, World Bank staff
Library of Congress Cataloging-in-Publication Data Strengthening the effectiveness of aid: lessons for donors. p. cm. (Development in practice) Includes bibliographical references. ISBN 0-8213-3222-8 1. Economic assistance. I. Series: Development in practice (Washington, D.C.) HC60.S7998 1995 338.9'1dc20 95-10662 CIP
Page iii
Contents
Foreword
v
Acknowledgments
vii
Summary
ix
1 The Environment for Aid
1
2 Aid and the Country Context
5
Commitment to Development
5
Institutional Development and Capacity Building
7
Sound Domestic Policies
10
The Effective Use of Resources
12
3 Aid and the Donors
16
Aid Coordination
16
Improving Donor Efficiency
23
4 Implications for Donors
31
Notes
36
Bibliography
38
Page v
Foreword
In recent years increasing attention has been paid to the use and overall effectiveness of aid resources. This attention is motivated by the dramatic changes in geopolitical relations that have taken place since the end of the cold war, by ever-increasing demands for humanitarian and development assistance, and by budgetary concerns in donor countries. It seems there is ever more work to be done, with fewer resources. From this stems a need to ensure that the available resources are being used to their utmost advantage.
The paper that was the basis for this book was prepared at the request of the Development Committeea group of finance ministers from both industrial and developing countries that meets at least annually to discuss important international economic issues. The authors were asked to consider how to go about improving the effectiveness of aid resources, with a particular focus on what donor agencies could do to ensure that aid is being used well. Their report draws on the existing literature and points to directions for future research.
The World Bank's Policy Research Department is building on this work by pursuing research in areas such as the impact of aid flows on savings and investment, the effect of aid on public expenditure patterns, and the impact of country policies on project performance. It should be kept in mind, however, that aid means more than the flow of financial resources; it includes the transmission of ideas and policy experience. The effects of these contributions are extremely important but are much more difficult to measure and quantify.
What is already clear, however, is that the effective use of aid resourceswhether in the form of money or ideasdepends on a partnership between the donors and the recipient countries. Substantial aid flows will do little good if the recipient country is not prepared to commit itself to economic development. Aid can only help those countries that are willing to help themselves. Donors, for their part, can make sure that their efforts are as efficient and cost effective
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95-10662