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May 10, 2010 |  7 comments |  Print  Your Opinion  

Editorial Team

Topic Join the Debate!

Editorial Team: As we prepare our upcoming Atlantic Memo, we would like to encourage all readers to make suggestions on improving aid effectiveness to Sub-Saharan Africa. Please respond to the highlighted questions in the draft memo. We highly appreciate your concrete policy recommendations, which will be distributed to policy makers.

Atlantic-community.org members agree that the focus on aid to Sub-Saharan Africa should be directed towards increasing effectiveness. There is a strong consensus that corruption and lack of accountability are two of the biggest obstacles to improving aid effectiveness. Aid ultimately needs to put Africa’s future and development in the hands of its people. To address issues of transparency, a comprehensive online index of aid effectiveness needs to be established. At the same time, donors and recipients need to prepare for aid exits by building local economies and infrastructure and working more closely with African citizens and governments.

1. Donor organizations need to publish an online index of aid effectiveness.

Atlantic-community.org members cite poor measurement of aid activities and lack of definable and determinable goals and strategy as serious impediments to aid programs (Wathne, Rusila).  While there is an abundance of information on how much money is devoted to aid, there is very little accessible documentation specifically on how aid money is spent and on the results of aid programs (Theiler, Rusila).  For this reason, an online index and evaluation that details aid expenditures and the outcomes of programs should be established based on the model of recovery.gov, a transparency measure by the US government that tracks how 787 billion dollars in stimulus money is being used (Barder).  This online database would publish information on how individual countries, international organizations, and NGOs allocate aid funds.  It would also chronicle the outcomes of these investments.  Doing this would hold aid donors and recipients accountable to those they are serving.  A system of effective selection would be created wherein programs that do not produce results either adapt or get phased out (Barder).

Dear readers,

It would be great, if together we could make these good policy recommendations even better and more concrete.

What criteria should be used to measure aid effectiveness?

How can bilateral donors, international organizations, and NGOs collaborate to create a comprehensive and accessible global aid quality index?



2.  An aid exit strategy should be a part of the planning process.

Aid at its current levels is ultimately unsustainable for both donors and receivers.  Donors cannot afford to write blank checks to Sub-Saharan governments, and if African nations hope to break the chronic cycle of underdevelopment, they must lead their own development (Adams).  An aid exit strategy that would reduce aid to levels of "self-help" must be implemented.  In this capacity, aid agencies would give funding to country-led programs (McPherson).  African governments would be readily accountable to their citizens and would be required to take initiative in increasing economic development (McCabe).

What can donors do to encourage more local leadership?

How make the aid exit a smooth transition?

What kind of programs and projects would best train citizens?



3. Aid programs must amplify and incorporate African voices.


The designing and implementation of aid programs is too often detached from the people they are trying to help (Arsene).  To circumvent the challenges that inefficient and corrupt governments pose to development (Brett), aid donors should work to empower citizens by getting their direct feedback and making alterations to aid programs accordingly (Rusila).  Donors should invest in programs that focus on job creation (McCabe) and building infrastructure - both objectives are part of the important task of promoting eventual self-sufficiency.  Similar to the Recovery and Reinvestment Act established in the United States, donors need to focus on small public works projects (Weiss).  This would empower Africans by providing them with employment opportunities and giving them a stake in their future.  Most importantly, this would assist the aid exit strategy by giving citizens the expertise and management capabilities to lead themselves.

To reverse the negative consequences of the "brain drain," bilateral and multilateral donor organizations should consult with Africans living outside of Africa.  Members of the African Diaspora have critical insight into the challenges on the continent from their combined first-rate education and their intimate knowledge of the challenges to African nations (Zachary).  A fellowship should be established that would give Diaspora Africans an economic incentive to apply their education and skills gained from living abroad towards addressing the challenges that African countries face.

How specifically should donor organizations be working with people on the ground to create more tailored and effective programs?

Of course, we would also appreciate other policy recommendations to make aid to Africa more effective.

 

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Comments
Harry  Hunter

May 10, 2010

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As a general point, corruption must be a central pillar in any discussion on Aid in sub-Saharan Africa. In relation to the effectiveness of aid and the tabulation of a 'aid quality index' corruption information (focusing on levels of aid lost in transition from benefactor to individual) should be a key criteria.

Practically, use of empirical research by Transparency International would be beneficial with their report on 'Mapping of Corruption and Governance Measurement Tools in Sub-Saharan Africa' (http://www.transparency.org/content/download/29626/450464/file/Meas...) discussing a number of methods which would be relevant to aid effectiveness research.
 
Bakhtiyor  Tukhtabaev

May 10, 2010

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1) What criteria should be used to measure aid effectiveness?

Perhaps it is very difficult to identify precise and exact criteria for measuring aid effectiveness, because aid can be of different types and forms (from monetary aid to aid in terms of goods and services), as well as targeted towards different recipients of different capabilities for managing aid.

Nevertheless, to my view, Roodman (2006) has outlined three main criteria of aid effectiveness measurement, which can serve as a starting point to develop an aid effectiveness index.

a) Poverty. A number of researchers have come to a conclusion that aid directed towards poorer countries should be more effective than aid supplied to richer countries. Therefore, in an aid effectiveness index, aid which is delivered to poorer countries should receive greater weight.
b) Governance. Independent of whether aid is directed towards poorer or richer countries, the fact that a country has better governance increases effectiveness of aid. Therefore if aid is directed towards a country with better governance it should be given greater weight in the index.
c) Tied aid. In some cases, donor countries provide aid with a condition that aid recipient should use these funds to purchase goods and services from the donor only. As a result, this prevents the recipient from striking the best possible deal. Therefore tied aid should receive less weight in the index.

2) How can bilateral donors, international organizations, and NGOs collaborate to create a comprehensive and accessible global aid quality index?

To my view, the index should be of a participatory form. In other words, the index will only publish data about aid supplied by its members. Membership in the index should be voluntary, however, once a party has become a member it should be obliged to provide comprehensive and accurate data on its aid activity.

Obviously, statistics on aid effectiveness will vary significantly under different criteria measuring aid effectiveness. Therefore, interests of all members should be taken into account and they should all come to consensus on which criteria to use. Otherwise, if a certain member’s interpretation of criteria is not considered, that party may not be willing to participate in providing data and information for construction of a comprehensive global aid index.


 
Member deleted

May 12, 2010

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A part of the aid for the development of Africa needs to be allocated to finance forestration, reforestration and incentives for commercial tree plantations in selected regions. I think so because I belive the way to successful & sound development has to pass through effective utilization of agricultural potential.

The warm climate of Africa may be very conducive to feasible commercial tree plantations at least in some parts of the continent. Therefore I presume Africa may have a comparative advantage in this sector as well.
 
Member deleted

May 14, 2010

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If it turns out to decide to allocate a part of the aid to be granted to the Africans for financing incentive policies for commercial tree plantations, it may be worthwhile to consider also complementing it by encouraging a rapid development of the forest products industry in the continent –preferably export oriented….
 
Member deleted

May 14, 2010

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If it turns out to decide to allocate a part of the aid to be granted to the Africans for financing incentive policies for commercial tree plantations, it may be worthwhile to consider also complementing it by encouraging a rapid development of the forest products industry in the continent –preferably export oriented….
 
Claudia  Schwegmann

May 25, 2010

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For a number of reasons I don't see an online index of aid effectiveness as a useful way forward. First of all, aid is only a minor part of Western policy influencing Sub-Sahara Africa. Even the Worldbank recognises that positive effects of aid are more than offset by negative trade policies (Nuscheler, 2008). Also immigration policy, research policy and the regulation of international financial markets are at least as important for development (Subramanian 2007). A health program for school children may proof in a rigorous impact evaluation to significantly raise school enrolement and can thus be declared effective. But if the donor country at the same time finances programs to attract medical staff from the same developing country, the health sector is weakened and aid effectiveness questionable.
Aid is only one aspect of development policy of donors. Therefore the Center for Global Development created the Commitment to Development Index, which includes aid, trade, investment, migration, environment and other important issues. Germany ranks 13 on this index with the Nordic countries and the Netherlands at the top.
Knowledge about what is wrong and how reform should look like is not the problem. The effectiveness of aid is monitored already by the Paris Agenda monitoring process. The implementation of the principles of the Paris Agenda and the Accra Agenda for Action would greatly enhance aid effectiveness. The current level of implementation is not really easy to find and to interpret for non-experts. There is room for improvement. But I really don't think we need another index. We need implementation. For reforms to be implemented the incentives inherent in the aid system need to change.
The development sector is very innovative when it comes to ever new indexes, matrixes and niffty tools to pinpoint success. Development aid is a market where stakeholders are eager to find new niches, just like in every other market. Every new approach, tool, index, etc. should be critically analysed if it really enhances accountability or whether it is just the result of self-referential tendencies within the aid business (Faust, Messner, 2007).
 
Claudia  Schwegmann

May 25, 2010

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Poverty orientation, governance orientation and status on tied aid are input factors and don't tell us about output, let alone impact. There are multiple possibilities of framing effectiveness and who's perspective should be most relevant? Consensus about how to comparatively capture effectiveness in different institutional settings, cultural, political and geographical is unlikely.
 

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