Aid and trust in country systems, Vol. 1 of 1

About

Countries

Data & Research

Learning

News

Projects & Operations

Publications

Topics

Home > Data & Research > Research > Author Profile > Report Details

Aid and trust in country systems

Author:	Knack, Stephen; Eubank, Nicholas;	Collection Title:	Policy Research working paper ; no. WPS 5005
Country:	World;	Date Stored:	2009/07/20
Document Date:	2009/07/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Health and other social services
Rel. Proj ID:	1W-Aid And The Mdgs -- -- P096746;	Region:	The World Region
Report Number:	WPS5005	Sub Sectors:	Other social services
SubTopics:	Economic Theory & Research; Gender and Health; Microfinance; Disability; Development Economics & Aid Effectiveness	TF No/Name:	TF057010-KCP
Volume No:	1 of 1

Summary: The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. A consensus view holds that country systems are strengthened when donors trust recipients to manage aid funds, but undermined when donors manage aid through their own separate parallel systems. This paper provides an analytical framework for understanding donorsﾒ decisions to trust in country systems or instead to micro-manage aid using their own systems and procedures. Where country systems are sufficiently weak, the development impact of aid is reduced by donorsﾒ reliance on them. Trust in country systems will be sub-optimal, however, if donors have multiple objectives in aid provision rather than a sole objective of maximizing development outcomes. Empirical tests are conducted using data from an OECD survey designed to monitor progress toward Paris Declaration goals. Trust in country systems is measured in three ways: use of the recipientﾒs public financial management systems, use of direct budget support, and use of program-based approaches. The authors show using fixed effects regression that a donorﾒs trust in recipient country systems is positively related to (1) trustworthiness or quality of those systems, (2) tolerance for risk on the part of the donorﾒs constituents, as measured by public support for providing aid, and (3) the donorﾒs ability to internalize more of the benefits of investing in country systems, as measured by the donorﾒs share of all aid provided to a recipient.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 58 pages	Official version*	4.06 (approx.)
	Text	Text version**

	See documents related to this project

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.

** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: http://go.worldbank.org/47TQ422HT0