Analysis of Aid Absorption in Burkina Faso: Could Donors’ Coordination Play an Effective Role?

Abstract

This study assesses absorption level of aid in Burkina Faso and analyzes the factors that determine this level. The analysis postulates that the level in absorbing aid is low and assumes that this level is determined by the multiplicity of donors and by mechanisms used to coordinate aid. To test this assumption, the study uses secondary data collected from 10 sectors of public administration over the period 2000-2019. Aid allocated to these sectors represented at least 75% of total aid received by the country during this period. The assessment indicate that about 58.46% of aid allocated to these sectors was effectively spent. Factors determining this absorption level were estimated using a Tobit model. The results conclude that the limiting factors lie both in donors’ behavior and in aid coordination mechanisms. Thus, better donors’ coordination could be an effective mechanism to improve aid absorption in these sectors.