Publication:
Aid and Reform in Africa : Lessons from Ten Case Studies

Loading...
Thumbnail Image
Files in English
English PDF (34.63 MB)
3,954 downloads
English Text (1.64 MB)
1,016 downloads
Published
2001-04
ISSN
Date
2013-06-13
Author(s)
Dollar, David R.
Holmgren, Torgny
Abstract
This book synthesizes the findings from ten case studies that investigate whether, when, and how foreign aid affected economic policy in Africa, and reveals the range of African policy experience. Results varied enormously, for example, while Ghana and Uganda were successful reformers that grew rapidly reducing poverty, Cote d'Ivoire and Ethiopia have shown significant reform recently, but its sustainability remains to be seen, and, in other countries, policies changed little, or even worsened. Based on the World Bank's Country Policy and Institutional Assessment, the study relates foreign aid in the 1990s, to a measure of overall economic policy, a broad measure that covers macroeconomic management, as well as effectiveness of the public sector in providing essential services for growth, and poverty reduction. In assessing aid, and reform policy, the study subdivides these countries in three groups: the post-socialist reformers (Ethiopia, Mali and Tanzania); the mixed reformers (Cote d'Ivoire, Kenya and Zambia), and the non-reformers (The Democratic Republic of Congo - Zaire - and Nigeria). Although defining "good policy", and how to measure it may be controversial, research and experience established a fair knowledge: absence of high inflation, functioning foreign exchange, openness to foreign trade, effective rule of law, and delivery of key services. Conclusions stipulate that key to successful reform, is a political movement for change; that key to beneficial aid is its disbursement alongside actual policy improvements; and, that technical assistance, and policy dialogue should continue a high level of finance in productive environments.
Link to Data Set
Citation
Dollar, David R.; Devarajan, Shantayanan; Holmgren, Torgny. Devarajan, Shantayanan; Dollar, David R.; Holmgren, Torgny, editors. 2001. Aid and Reform in Africa : Lessons from Ten Case Studies. © World Bank. http://hdl.handle.net/10986/13894 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Potential Benefits and Risks of Increased Aid Flows to Burundi
    (World Bank, Washington, DC, 2010-01) Nielsen, Hannah; Madani, Dorsati
    Burundi has experienced a significant increase in aid flows in recent years. Currently, about half of the budget is funded by aid, mostly grants. The high external assistance has, however, not yet translated into high and sustainable growth rates. This paper analyzes (i) the policy response of the government to the aid surge and its impact on macroeconomic variables; and (ii) the allocation of external assistance and its implications for growth. Since not all aid affects economic development in the same way, aid disbursements are disaggregated by sector as well as by their lag in impacting growth. The analysis shows that Burundi has mostly spent and absorbed increased aid flows, but has until now not suffered significantly from the possible negative effects of an appreciating exchange rate and the related loss of competitiveness, but the possibility of a Dutch disease effect remains a risk. The country s low growth performance, despite high aid inflows, is not necessarily a sign that aid is ineffective or exceeding Burundi s absorptive capacity. It reflects that a large share of aid has been allocated to either humanitarian and emergency aid or long-run growth enhancing sectors. Therefore, the lagged impact of aid on economic growth is not yet visible. Furthermore, the composition of the domestically financed budget is biased toward recurrent spending, and therefore not directly growth enhancing. In addition, low and often unpredictable aid disbursement ratios aggravate the bias away from investment and toward government consumption. To boost short-term growth, the share of aid allocated to productive sectors, such as agriculture and the supporting infrastructure, needs to be increased. Firm commitments and timely disbursements of aid by donors are essential and the Government of Burundi needs to strengthen its capacity and mechanisms for donor coordination.
  • Publication
    The World Bank Annual Report 2001
    (Washington, DC, 2001) World Bank
    This Annual Report covers the period from July 1, 2000, to June 30, 2001, and details the World Bank strategy for meeting the poverty challenge. After the Introduction, Chapter 1 provides an overview of Bank activities in 2001 that focused on multi-dimensional support, improved development effectiveness, increased funding volume, formalized the country business model, evolved country assistance strategies by preparing them in consultation, developed investment vehicles to support low-income countries, created a task force to consider the response to the needs of middle-income countries, developed an innovative IBRD and IDA program and project lending to support strong national programs, assessment of the Strategic Compact, the use of the World Bank Institute to empower through knowledge and setting out a strategic framework for future directions. Chapter 2 describes the role of the Board of Executive Directors. Chapter 3 examines the thematic issues the Bank is tackling, such as addressing the social, institutional, and economic dimensions of poverty; investing in people; supporting private sector development; building strong financial systems; and building effective legal and judicial systems. Chapter 4 discusses the Bank's role in fighting poverty and aiding development region by region. Chapter 5 looks at Bank project performance. Chapter 6 focuses on Bank partnerships, Chapter 7 sums up approved projects, and Chapter 8 provides organizational information. This report is in 2 volumes. Volume 2 comprises the complete Management's Discussion and Analysis, audited financial statements, and appendices.
  • Publication
    Poverty Reduction Support Credits
    (Washington, DC: World Bank, 2010-09) Grawe, Roger
    Vietnam, a one-party socialist state dominated by the Communist Party of Vietnam, has in recent years moved towards a pragmatic growth-oriented approach to economic policy. Early reform measures in 1986 with the doi moi, or new way, introduced a series of market-oriented reforms in industry and trade, as well as agriculture. The collapse of the Soviet Union in 1989 hastened the pace of reform, as the authorities intensified monetary, banking, and structural reforms and set the stage for substantial trade and investment liberalization, and as Vietnam's arrears with the International Monetary Fund (IMF) were settled in 1993. Key lessons that emerge from the Vietnam study include: a) the Poverty Reduction Support Credit (PRSC) process is strengthened through rigorous analytic underpinnings (for example, Vietnam development reports, public expenditure reviews, and other analytical and advisory services) that provide a shared vision of the development agenda and a menu of policy actions linked to the thematic pillars of the poverty reduction strategy; b) even in a context of high government commitment, fostering a connection to an external anchor (such as world trade organization accession) can help maintain momentum in the PRSC process and reform generally; c) PRSCs can function as an effective complement to, and catalyst for, sector operations including the development of sector-wide approaches and sector budget support; and d) with large numbers of international and government participants, it becomes increasingly important for both Government and the Bank that responsibilities for coordinating inputs and consultation and maintaining a policy overview be closely linked, defined, and adequately funded.
  • Publication
    A Financial Social Accounting Matrix for the Integrated Macroeconomic Model for Poverty Analysis : Application to Cameroon with a Fixed-Price Multiplier Analysis
    (World Bank: Washington, DC, 2004-02) Christian A. Emini; Hippolyte Fofack
    Cameroon is engaged in the Poverty Reduction Strategy Paper (PRSP) process, which emphasizes increased focus on poverty reduction in the design and implementation of growth and adjustment strategies. The Integrated Macroeconomic Model for Poverty Analysis (IMMPA) recently developed at the World Bank provides an analytical structure for supporting the PRSP process and quantifying poverty reduction strategies. Drawing on that framework, the authors provide a detailed financial social accounting matrix (SAM) for the Cameroonian economy to serve as input into the construction of an IMMPA model for Cameroon. An analysis of this financial SAM shows that the dramatic fall in investment during the crisis period persisted in the post-devaluation growth period in the late 1990s. Continued low investment has implications for ongoing high unemployment rates and poor welfare indicators. The authors illustrate this with simulations based on fixed-price multiplier analysis that highlight the potential growth and welfare benefits of increased public investment, following hypothetical debt relief and reduction of external debt servicing within the framework of the heavily indebted poor countries initiative.
  • Publication
    Egypt - Positive Results from Knowledge Sharing and Modest Lending : An IEG Country Assistance Evaluation 1999-2007
    (Washington, DC: World Bank, 2009) Independent Evaluation Group
    This country assistance evaluation reviews World Bank support to the Arab Republic of Egypt from fiscal 1999 through 2007. Egypt's economic performance over the period improved substantially. This was particularly true after 2004, following improvements in economic management, an increase in the pace of structural reforms, and correction of the exchange rate. Gross domestic product growth averaged about five percent over the period, rising to almost seven percent in 2006 and 2007. Human development indicators improved significantly. However, progress in poverty reduction has been disappointing, with a deterioration in the poverty headcount, particularly in Upper Egypt. Future Bank strategy needs to reflect Egypt's middle-income status by including a flexible lending program and an emphasis on knowledge services, including reimbursable technical assistance. The Bank can further strengthen the partnership by focusing on: (i) the persistent issue of poverty and inequality; (ii) analytic work on macroeconomic analysis and income disparities and its improved dissemination; (iii) further financial sector reforms and promoting continued reforms in systems that indirectly combat corruption; and (iv) sectoral strategies and policy and institutional reforms in infrastructure and energy.

Users also downloaded

Showing related downloaded files

  • Publication
    Corporate Governance of State-Owned Enterprises : A Toolkit
    (Washington, DC, 2014-10-04) World Bank Group
    This Toolkit provides an overall framework with practical tools and information to help policymakers design and implement corporate governance reforms for state-owned enterprises. It covers the key elements of corporate governance, including legal and regulatory framework, state ownership arrangements, performance management systems, financial and fiscal discipline, boards of directors, transparency and disclosure, and protection of shareholders in mixed ownership companies. Experience shows that no one approach is universally applicable and the choice of measures depends on country and enterprise circumstances. The Toolkit thus provides a range of frameworks, concepts, case examples, checklists, and model documents that together aim to help government officials make the appropriate choices for their circumstances. The Toolkit concludes with guidance on managing the reform process, in particular how to prioritize and sequence reforms, build capacity, and engage with stakeholders.
  • Publication
    Empowerment in Practice : From Analysis to Implementation
    (Washington, DC: World Bank, 2006) Alsop, Ruth; Bertelsen, Mette; Holland, Jeremy
    This book represents an effort to present an easily accessible framework to readers, especially those for whom empowerment remains a puzzling development concern, conceptually and in application. The book is divided into two parts. Part 1 explains how the empowerment framework can be used for understanding, measuring, monitoring, and operationalizing empowerment policy and practice. Part 2 presents summaries of each of the five country studies, using them to discuss how the empowerment framework can be applied in very different country and sector contexts and what lessons can be learned from these test cases. While this book can offer only a limited empirical basis for the positive association between empowerment and development outcomes, it does add to the body of work supporting the existence of such a relationship. Perhaps more importantly, it also provides a framework for future research to test the association and to prioritize practical interventions seeking to empower individuals and groups.
  • Publication
    Human Resources for Mental Health Service Delivery in Viet Nam
    (Washington, DC: World Bank, 2024-05-30) Le, Sang Minh; Hahn, Eric; Tran, Tu Anh; Mavituna, Selin; Ta, Tam Minh Thi
    "Human Resources for Mental Health Service Delivery in Viet Nam" provides an overview of the country’s current state of and challenges to mental health service delivery. The framework of the report is composed of four interconnected domains: health care, social services, education and mental health literacy, and informal care systems. The organizational structure, significant achievements, critical gaps, and problems in mental health service delivery at the institutional and community levels are highlighted in terms of public demand, availability, accessibility, and quality of service. The report uses new empirical data from surveys, workshops, and group discussions with key stakeholders. It describes the mental health workforce in Viet Nam and analyzes critical issues, including the shortage of professionals (psychiatrists, mental health nurses, psychologists, psychotherapists, social workers, occupational therapists, and others). Given the need to develop all levels of mental health care, the report addresses the uneven distribution of the provision of service between levels of health care institutions and rural and urban regions, competency mismatches, job satisfaction, recruitment, and challenges to the retention of mental health workers. The report also examines the need for mental health education and training at the institutional and structured program levels, as well as the supply constraints to the future development of the mental health workforce. The interdisciplinary team of authors emphasizes the urgent need for Viet Nam to strengthen its human resources for mental health service delivery toward achieving universal health coverage, including all mental disorders. The report’s evidence-based recommendations include multisectoral workforce planning; transformation of education and training; coordination, integration, and retention of the available workforce; improvement of the workforce governance framework; and strengthened mental health financing.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Environmental, Social, and Governance Investing
    (World Bank, Washington, DC, 2021-03-01) Bouye, Eric; Klingebiel, Daniela; Ruiz, Marco
    This primer responds to central banks’ growing demand for knowledge on social, governance, and environmental considerations (ESG) in the investment process. This area has gained traction in the last two decades. More recently, central banks’ interest in ESG has increased, but much of the information available is aimed at investors with different investment objectives and broadly diversified portfolios. The authors fill that information gap by reviewing the definitions of ESG and the main ESG investment approaches, including their applicability to asset classes. The authors then examine how foreign reserve managers can apply ESG investing in their reserve management operations. The authors find limited scope for implementing ESG strategies in reserve management, given that most central banks still invest primarily in sovereign bonds of major economies. Yet, the authors also identify opportunities and critical considerations for central banks interested in implementing ESG investing in their reserve management operations.