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"Budget support has become an increasingly important instrument in the context of a partnership-based approach to development assistance. Compared to traditional modes of aid delivery, it promises greater country ownership, reduced transaction costs, better donor coordination, scaling up of poverty reduction and potentially greater development effectiveness. This book presents a timely and valuable review of key concepts, issues, experiences and emerging lessons relevant to budget support. It provides an overview of principal characteristics, expectations and concerns related to budget support, key design and implementation issues, as well as some practical experiences. The contributors include government representatives from developing countries, leading academic scholars, bilateral development agencies and development practitioners from international financial institutions, including the World Bank and the International Monetary Fund. They present a wide range of views on key issues such as the choice of instruments, alignment of budget support with country programs, predictability, and coordination and conditionality. The authors draw their insightful analysis on the contemporary research and evaluation work, as well as the broad practical experience with budget support. This book will be of great interest to practitioners in aid-recipient countries and international financial institutions, bilateral agencies and civil organizations involved in budget support."
This book is an anthology of essays contributing new scholarship to the contemporary discourse on the concept of aid. It provides an interdisciplinary investigation of the role of aid in African development, compiling the work of historians, political scientists, legal scholars, and economists to examine where aid has failed and to offer new perspectives on how aid can be made more effective. Questions regarding the effectiveness of aid are addressed here using specific case studies. The question of ownership is examined in the context of two debates: 1) to what extent should aid be designed by the recipient country itself? and 2) should aid focus on “need” or “performance”? That is, should donors direct aid to the poorest countries, regardless of their policies and governance, or should aid “reward” countries for doing the right thing? The future of aid is also addressed: should aid continue to be a part of the development agenda for countries in sub-Saharan Africa? If so, how much and what type of aid is needed, and how it can be made most effective? The major criticism against aid is that it cripples the recipient country’s economic growth by turning it into a passive receiver; in addition, it has been noted that aid is mostly supply-driven, depending upon donors rather than the actual needs of recipients. For this reason, aid may not meet the goals for which it was intended. To meet the needs of the communities they want to help, donors should work through consultation and a measure of recipient ownership. Donors need to understand context, to protect human rights, and to be guided by principles of social and environmental justice. Other suggested strategies for making aid more effective include peer review; self-assessment; the empowerment of women; encouraging accountability; investing in agriculture; helping smallholder subsistence farmers; introducing ethical and professional standards for civil service; and raising the competence of civil servants.
This book explores the political economy of governance in Palestine. It makes a unique contribution to studies of governance and political economy using the Palestinian Authority (PA) as a case study, introducing and developing the concept of ‘dual rentierism’. The author uses primary research to chart the evolution of the fiscal sociology of the PA and explore how it has shaped the PA’s economic policies and the state–society relationship in the Palestinian Territories. The book adopts a critical political economy approach, making the case that external sources of PA income represent political rents that need to be disaggregated and studied concurrently. It further focuses on the drivers and constraints that have shaped the PA’s policy development and state-building associated with its dependence on external revenues. Ultimately, the book elaborates on how the need for fiscal survivability has thwarted the Palestinian quest for statehood.
This evaluation examines the relevance and effectiveness of Poverty Reduction Support Credits (PRSCs), introduced by the Bank in early 2001 to support comprehensive growth, improve social conditions, and reduce poverty in IDA countries. PRSCs were intended to allow greater country-ownership, provide more predictable annual support, exhibit more flexible conditionality, and strengthen budget processes in a results-based framework. By September 2009, the Bank had approved 99 PRSCs totaling some $7.5 billion and representing 38% percent of IDA policy based lending. The evaluation finds that in terms of process, PRSCs were effective in easing conditionality, increasing country ownership and aid predictability, stimulating dialogue between central and sectoral ministries, and improving donor harmonization. In terms of content, PRSCs succeeded in emphasizing public sector management and pro-poor service delivery. Yet in terms of results, it is difficult to distinguish growth and poverty outcomes in countries with PRSCs from other better performing IDA countries. There is scope for further simplifying the language of conditionality and underpinning PRSCs with better pro-poor growth diagnostics. PRSCs can also strengthen their results frameworks and limit sector policy content in multi-sector DPLs to high-level or cross-cutting issues. Today, Bank policy has subsumed PRSCs under the broader mantle of Development Policy Lending and the rationale for a separate brand name although differences linger from the past. Since PRSCs and other policy-based lending have gradually converged in design, remaining differences compared to other Development Policy Loans should be clearly spelled out, or the separate PRSC brand name should be phased out.
This book explores how rise of NGOs in developing countries has affected service provision, governance, state-society relations, and state development.
The experience of FLEGT Voluntary Partnership Agreements offer several lessons on how to design benefit sharing mechanisms under REDD+ so that they build credibility and trust among the potential recipients of REDD+ benefits. This paper focuses on lessons for three specific design aspects of REDD+ benefit-sharing mechanisms: (i) the balance between state and non-state actors in the architecture of benefit-sharing mechanism institutions; (ii) the role of civil society organizations (CSOs) in monitoring; and (iii) the design of multistakeholder processes. The choice and arrangement of institutions and actors is crucial for credibility: independence can be enhanced or reduced by the architecture of check and balance mechanisms and the type of actors involved. Lessons from VPAs also highlight the trade-off between the cost efficiency and capacity building gains of using existing (often state) institutions and actors versus the potential increased effectiveness and independence that may be provided by new and/or non-state institutions and actors. The use of civil society monitors and multistakeholder processes can provide credibility through enhancing accountability and transparency as well as increasing commitment and confidence in the system. The impact of civil society monitoring can be enhanced by formal recognition of its role, establishing complaints mechanisms and formalizing access to information. Multistakeholder processes can be strengthened by clarifying roles, responsibilities and decision-making mandates of the process; clarifying who should be included; accepting that such processes take time; and maintaining technical and financial support.
The October 2013 Regional Economic Outlook: Sub-Saharan Africa provides a comprehensive report on the prospects for growth in the region, as well as the major risks to the outlook. Generally, growth is expected to remain strong despite a downward revision since the May 2013 report. The report analyzes drivers of growth in nonresource-rich sub-Saharan African countries, and examines the risks to frontier market economies of volatile capital flows as they become more integrated with international capital markets.
This is a companion book to Earthscan’s 2010 book Climate Change Adaptation and International Development. This book consists of summarised case studies looking at climate change mitigation specifically in Asia, the region producing the most greenhouse gas emissions. It examines international development from the perspective of climate change mitigation and looks at how international communities and donors support developing nations by funding, technical assistance and capacity building.
The global economy grew strongly in the first half of 2007, although turbulence in financial markets has clouded prospects. While the 2007 forecast has been little affected, the baseline projection for 2008 global growth has been reduced by almost 1⁄2 percentage point relative to the July 2007 World Economic Outlook Update. This would still leave global growth at a solid 43⁄4 percent, supported by generally sound fundamentals and strong momentum in emerging market economies. Risks to the outlook, however, are firmly on the downside, centered around the concern that financial market strains could deepen and trigger a more pronounced global slowdown. Thus, the immediate focus of policymakers is to restore more normal financial market conditions and safeguard the expansion. Additional risks to the outlook include potential inflation pressures, volatile oil markets, and the impact on emerging markets of strong foreign exchange inflows. At the same time, longer-term issues such as population aging, increasing resistance to globalization, and global warming are a source of concern.