Donor Fragmentation and Bureaucratic Quality in Aid Recipients

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."

Bibliographic Details

Main Authors:	Knack, Stephen, Rahman, Aminur
Language:	English en_US
Published:	World Bank, Washington, D.C. 2004-01
Subjects:	ADVERSE EFFECTS, AID, AID AGENCIES, AID COORDINATION, AID PROGRAMS, BIDDING, CLIMATE, COLLECTIVE ACTION, COMMITMENT, COMMITMENTS, CONTRACTORS, COUNTERPART, DATA SOURCES, DECISION MAKING, DEVELOPED COUNTRIES, DEVELOPMENT ACTIVITIES, DEVELOPMENT AGENCIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANKS, DEVELOPMENT ISSUES, DEVELOPMENT OBJECTIVES, DEVELOPMENT PROJECTS, DISBURSEMENT, DISBURSEMENTS, DONOR COORDINATION, DONOR COUNTRIES, DONOR COUNTRY, DONOR FUNDS, ECONOMICS, ECONOMISTS, EMPLOYMENT, EXPENDITURES, FINANCIAL FLOWS, FINANCIAL INSTITUTIONS, HEALTH SECTOR, INCOME, LABOR FORCE, LEARNING, LENDERS, MANAGERS, MARGINAL COST, MEDIA, POLICY RESEARCH, POVERTY ASSESSMENTS, PRIVATE SECTOR, PUBLIC SECTOR, REAL RESOURCES, SCHOOLS, SOCIAL DEVELOPMENT, SPONSORS, SUPPLIERS, TRAINING PROGRAMS DONOR FINANCE, FRAGMENTATION, BUREAUCRACY, GOVERNMENT ROLE, ADMINISTRATIVE CAPABILITY, DONOR FUNDED PROJECTS, FUNDS MANAGEMENT STRUCTURES, CROSS-COUNTRY EXPERIENCE, QUALITY ASSESSMENT, MULTILATERAL AID,
Online Access:	http://documents.worldbank.org/curated/en/2004/01/2879345/donor-fragmentation-bureaucratic-quality-aid-recipients https://hdl.handle.net/10986/14201
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