What determines the success or failure of german bilateral financial aid?

Abstract

Aid, evaluation, financial cooperation, performance, supervision,

How to Assess the Effectiveness of Development Aid Projects: Evaluation Ratings versus Project Indicators

“…Moreover, they find that an increasing level of overall aid received by the partner country is negatively correlated with project success. The Hemmer and Lorenz () study also underlines that economic stability affects evaluation ratings: a better macroeconomic environment, indicated by less inflation, a balanced budget and trade openness, is significantly positively correlated with project ratings.…”

“…Studies in the second group add sector‐unspecific project management variables to the set of country characteristics to explain project performance (Denizer et al, ; Dollar & Svensson, ; Kilby, ). Except for Hemmer and Lorenz () and Ivanova et al (), all studies focus on WB aid and measure project performance with ERR or evaluation ratings.…”

What Determines Evaluation Outcomes? Evidence from Bi- and Multilateral Development Cooperation

“…The literature on the economic theory of bureaucracy treats evaluation merely as a means of control (Townsend 1979, Wintrobe 1997, Moe 1997, Dixit 2002. Development policy oriented empirical studies generally consider evaluation outcomes as an indicator of true project results and focus on the relationship between donor preparation, analysis, supervision and/or management and the success of development programs (Deininger, Squire and Basu 1998, Dollar and Svensson 2000, Hemmer and Lorenz 2003. Kilby (2000) follows this tradition although he already includes some discussion about incentive structures which might lead to biased evaluation results.…”