A Framework for Understanding Aid Effectiveness Determinants, Strategies and Tradeoffs

Howes, Stephen

doi:10.1002/app5.15

Cited by 14 publications

(7 citation statements)

References 19 publications

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“…The β value of GDPpc was (−0.271), supporting the negative relationship argument with CF [42,46], with the relationship being significant at p < 0.05. While the limited sample size could explain the lack of a significant relationship between G and CF, the low significance could also relate to the argument that unlike multilateral funds, most large bilateral donors such as the USA and France (whose contributions make up a significant portion of total global aid) are not very selective about the governance quality of countries they channelled their aid to [46,48]. The results therefore indicate that P, GDPpc, and RE, as the largest unique contributors to the model after the overlapping effects of other variables, have been statistically removed.…”

Section: Phase 3-linking Countries' Readiness Progress To Climate Finmentioning

confidence: 99%

Assessing Climate Finance Readiness in the Asia-Pacific Region

Samuwai

Hills

2018

Sustainability

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Readiness is the current mantra in the climate finance discourse and is a key determinant for accessing climate finance. This study develops and applies an analytical 3-dimensional framework to appraise climate finance readiness in selected Asia-Pacific countries. Three dimensions of readiness are identified: (1) Policies and Institutions, (2) Knowledge Management and Learning, and (3) Fiscal Policy Environment. Using the Climate Public Expenditure and Institutional Review as the basis for such framework, the study uncovers a massive readiness gap between countries in the Asian sub-region and those in the Pacific sub-region. The study also found that readiness has a predictable, yet small, impact on the magnitude of climate finance accessed. This suggests that improving readiness alone is not sufficient to unlock climate finance, as access to climate finance is to a larger extent determined by other factors; this is critical to shaping readiness endeavors for the Pacific Small Island Developing States (PSIDS), as well as for donors. This study argues for a rethink in the PSIDS current readiness approach, reducing emphasis on multilateral and private flows and diversifying through practical and uncomplicated bilateral and remittance sources. These two sources of finances have a good track record of consistently mobilizing external finance to PSIDS despite their climate finance readiness status. Broadening readiness efforts towards these two alternative funding sources extends the feasibility of the current readiness approach. The present direction of climate finance readiness offers a continuing access dilemma to many of the PSIDS, especially the poorest and most vulnerable.

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Section: Phase 3-linking Countries' Readiness Progress To Climate Finmentioning

confidence: 99%

Assessing Climate Finance Readiness in the Asia-Pacific Region

Samuwai

Hills

2018

Sustainability

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“…There is also a question of sustainability when initiatives are generated and controlled from the agenda of the donor country that may not correspond to the agenda of the recipient country and its community cultural values. “It is commonly and no doubt rightly said that aid projects will only succeed if recipients ‘own’ them” (Howes, , p. 69).…”

Section: Foreign Aid and Inclusive Educationmentioning

confidence: 99%

Dependency on Australian aid and the introduction of inclusive education initiatives in Kiribati

Yates

2019

Asia & Pacific Policy Stud

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“…Accordingly, various strands in the principal–agent literature applied to development policy and institutions focuses not only on getting the incentive structure between principal and agent right, but also on the capability of the principal – or a group of principals, a ‘collective principal’ (Nielson and Tierney, : 244) – to send coherent and consistent messages to the agent (see for example Martens et al., ; Howes, ). This brings in the second political economy dimension of aid effectiveness, namely the problem of collective action among donors, as donor preferences and concepts over how to achieve socioeconomic development, and also on how to provide aid, typically differ as well.…”

Section: The Paris Agenda: Technical Fixes For Political Problems?mentioning

confidence: 99%

The rise and demise of European budget support: political economy of collective European Union donor action

Koch

Leiderer

Faust

et al. 2016

Development Policy Review

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This article uses the example of European budget support to show the differences in applying principal-agent and collective action analysis to the donor-recipient relationship and the incentives of European donors. Our results show that the Paris Declaration, while formulating the 'right' principles, carries a number of assumptions regarding the (cap)ability of donors to act collectively. This assumption, however, fails to include the political economy of European donors and their own political, institutional and individual incentives that undermined this capability substantially. In other words, the domestic political costs and incentives for European donors to implement the Paris agenda, and in particular aid modalities such as budget support, were not given enough consideration when the aid effectiveness agenda was formulated.

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A Framework for Understanding Aid Effectiveness Determinants, Strategies and Tradeoffs

Abstract: Abstract

Cited by 14 publications

References 19 publications

Assessing Climate Finance Readiness in the Asia-Pacific Region

Assessing Climate Finance Readiness in the Asia-Pacific Region

Dependency on Australian aid and the introduction of inclusive education initiatives in Kiribati

The rise and demise of European budget support: political economy of collective European Union donor action

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