Publication:
Aid and Trust in Country Systems

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dc.contributor.authorKnack, Stephen
dc.contributor.authorEubank, Nicholas
dc.date.accessioned2012-03-19T19:11:39Z
dc.date.available2012-03-19T19:11:39Z
dc.date.issued2009-07-01
dc.description.abstractThe 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. A consensus view holds that country systems are strengthened when donors trust recipients to manage aid funds, but undermined when donors manage aid through their own separate parallel systems. This paper provides an analytical framework for understanding donors decisions to trust in country systems or instead to micro-manage aid using their own systems and procedures. Where country systems are sufficiently weak, the development impact of aid is reduced by donors reliance on them. Trust in country systems will be sub-optimal, however, if donors have multiple objectives in aid provision rather than a sole objective of maximizing development outcomes. Empirical tests are conducted using data from an OECD survey designed to monitor progress toward Paris Declaration goals. Trust in country systems is measured in three ways: use of the recipient s public financial management systems, use of direct budget support, and use of program-based approaches. The authors show using fixed effects regression that a donor s trust in recipient country systems is positively related to (1) trustworthiness or quality of those systems, (2) tolerance for risk on the part of the donor s constituents, as measured by public support for providing aid, and (3) the donor s ability to internalize more of the benefits of investing in country systems, as measured by the donor s share of all aid provided to a recipient.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090720134118
dc.identifier.doi10.1596/1813-9450-5005
dc.identifier.urihttps://hdl.handle.net/10986/4197
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5005
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVERSE CONSEQUENCES
dc.subjectADVERSE IMPACTS
dc.subjectAGGREGATE DEMAND
dc.subjectAID
dc.subjectAID AGENCIES
dc.subjectAID ALLOCATION
dc.subjectAID FLOWS
dc.subjectAID PROGRAMS
dc.subjectANECDOTAL EVIDENCE
dc.subjectCAPACITY BUILDING
dc.subjectCOMPANION
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCOMPREHENSIVE DEVELOPMENT
dc.subjectCOMPREHENSIVE DEVELOPMENT FRAMEWORK
dc.subjectDEBT
dc.subjectDEVELOPMENT AID
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDEVELOPMENT BANKS
dc.subjectDEVELOPMENT BENEFITS
dc.subjectDEVELOPMENT COOPERATION
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT GOALS
dc.subjectDEVELOPMENT IMPACT
dc.subjectDEVELOPMENT ISSUES
dc.subjectDEVELOPMENT OBJECTIVES
dc.subjectDEVELOPMENT POLICY
dc.subjectDEVELOPMENT RESEARCH
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDEVELOPMENT STRATEGY
dc.subjectDISEASES
dc.subjectDONOR AGENCIES
dc.subjectDONOR AGENCY
dc.subjectECONOMETRICS
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYMENT
dc.subjectEQUALITY
dc.subjectEQUATIONS
dc.subjectFISCAL POLICY
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGENDER
dc.subjectGOVERNMENT PARTICIPATION
dc.subjectHUMANITARIAN AID
dc.subjectINCLUSION
dc.subjectINCOME
dc.subjectINTERNATIONAL AID
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC STABILITY
dc.subjectMARGINAL BENEFITS
dc.subjectMARGINAL PRODUCTS
dc.subjectMULTILATERAL DEVELOPMENT BANKS
dc.subjectNATIONAL DEVELOPMENT
dc.subjectNATURAL RESOURCES
dc.subjectPARTY
dc.subjectPOSITIVE EFFECTS
dc.subjectPRIORITIES
dc.subjectPRIVATE COMPANIES
dc.subjectPUBLIC GOOD
dc.subjectRENT SEEKING
dc.subjectRESOURCE MANAGEMENT
dc.subjectSCHOOLS
dc.subjectSPECIALISTS
dc.subjectSTD
dc.subjectSUSTAINABILITY
dc.subjectTARGETING
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTECHNICAL SUPPORT
dc.subjectTOLERANCE
dc.subjectTRANSACTIONS COSTS
dc.subjectTRANSPARENCY
dc.subjectTUBERCULOSIS
dc.subjectVALUATION
dc.subjectVALUE ADDED
dc.subjectVOTERS
dc.titleAid and Trust in Country Systemsen
dspace.entity.typePublication
okr.crosscuttingsolutionareaGender
okr.crossref.titleAid And Trust In Country Systems
okr.date.doiregistration2025-04-10T11:23:17.364783Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090720134118
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeHealth, Nutrition, and Population
okr.guid345241468175732441
okr.identifier.doi10.1596/1813-9450-5005
okr.identifier.externaldocumentum000158349_20090720134118
okr.identifier.internaldocumentum10839784
okr.identifier.reportWPS5005
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/07/20/000158349_20090720134118/Rendered/PDF/WPS5005.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.sectorHealth and other social services :: Other social services
okr.themeSocial protection and risk management :: Poverty strategy, analysis and monitoring
okr.topicSocial Protections and Labor::Disability
okr.topicGender::Gender and Health
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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