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Harmonisation & Alignment

Donor coordination and the uses of aid (pdf 133kb)

This paper analyses the ways in which donors work together with aid institutions, and how that affects the way aid is used and its effectiveness.

The paper starts by specifying a simple framework for the discussion, and then reviews the theoretical literature. It then provides data on donor proliferation and discusses how coordination modalities have evolved over time, in particular during the current phase with partnership and ownership.

The following sections summarise the limited empirical evidence available on the impact of coordination on transaction costs and public-sector management and governance.  A key issue with regard to the latter is how donor coordination affects the incentives of the recipient government. The paper concludes with a review of the policy debate and some policy conclusions.

 

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