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Aid Effectiveness: Opening the Black Box
, 2007
"... The empirical literature on aid effectiveness has yielded unclear and ambiguous results. This is not surprising given the heterogeneity of aid motives, the limitations of the tools of analysis, and the complex causality chain linking external aid to final outcomes. The causality chain has been large ..."
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The empirical literature on aid effectiveness has yielded unclear and ambiguous results. This is not surprising given the heterogeneity of aid motives, the limitations of the tools of analysis, and the complex causality chain linking external aid to final outcomes. The causality chain has been largely ignored and as a consequence the relationship between aid and development has been mostly handled as a kind of 'black box'. Making further progress on aid effectiveness requires opening that box. This paper examines the causality chain linking aid flows to development outcomes. It argues that many of the questions that policy makers and economists would like to squeeze data into answering simply cannot be answered due to the complexity and ‘noise ’ along links in the chain, and hence the problem of attribution. It then examines what is known about aid effectiveness along different links in the causality chain. Finally, it turns to recent trends in the way aid is delivered and the new model that appears to be emerging. I. The ‘causality chain’: aid, effectiveness and results The debates around the impact of aid on development have typically aggregated
Produced by the Research Support TeamInfrastructure Governance and Corruption: Where Next?
"... Governance is central to development outcomes in infrastructure, not least because corruption (a symptom of failed governance) can have significantly negative impact on returns to infrastructure investment. This conclusion holds whether infrastructure is in private or public hands. This paper looks ..."
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Governance is central to development outcomes in infrastructure, not least because corruption (a symptom of failed governance) can have significantly negative impact on returns to infrastructure investment. This conclusion holds whether infrastructure is in private or public hands. This paper looks at what has been learned about the role of governance in infrastructure, provides some recent examples of reform efforts and project approaches, and suggests an agenda for greater engagement—primarily at the sector level—to improve governance and reduce the development impact of corruption. The discussion covers market structure, regulation, state-owned enterprise reform, planning and budgeting, and project design. This paper—a product of the Finance, Economics and Urban Division of the Sustainable Development Network—is part of a larger effort in the department to research issues connected with governance and corruption in sustainable development.
The Global Panopticon of Governance: The Measuring, Monitoring, and Disciplining of States
"... A recent OECD study noted that in the last fifteen years there has been “a veritable explosion in interest in the quality of “governance ” in the developing world, ” accompanied by “equally explosive growth in the use of quantitative governance indicators… ” (Arndt & Oman, 2006: 13, emphasis in ..."
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A recent OECD study noted that in the last fifteen years there has been “a veritable explosion in interest in the quality of “governance ” in the developing world, ” accompanied by “equally explosive growth in the use of quantitative governance indicators… ” (Arndt & Oman, 2006: 13, emphasis in original). The UNDP notes: “There is an increasing demand from developing country governments, civil society organisations and donor agencies to measure different aspects of democracy, human rights and governance. This demand has resulted in a tremendous growth in indicator sources, which are used to measure the performance of governments, the quality of public institutions, as well as people’s perceptions of various aspects of governance ” (UNDP, n.d.). There are various drivers for this phenomenon, the most recent being the adoption of the Millennium Development Goals (MDGs), with requirements of specific indicators of recipient government performance. The MDGs are supported through Global Monitoring Reports, which include reviews of governance (Levy, 2007). The World Bank Institute estimated in 2006 that there were some 180 user-accessible sets of governance indicators, in turn made up of thousands of individual indicators. The more visible ones are well-
Does Governance Matter for Infrastructure Development? Empirical Evidence from Asia
"... Governance is an important determinant for both national and regional infrastructure development for many parts of Asia. This study shows that institutional governance is an important determinant for national and regional infrastructure development. Improved national governance is a necessary condi- ..."
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Governance is an important determinant for both national and regional infrastructure development for many parts of Asia. This study shows that institutional governance is an important determinant for national and regional infrastructure development. Improved national governance is a necessary condi-tion for enhancing regional governance for effective regional infrastructure development. However, strong and formal regional institutions need to be developed for achieving effective regional connectiv-ity in Asia. This article concludes that the soft infrastructure such as the quality of governance is crucial to make hard infrastructure work efficiently. JEL Classification: F15, L90