Financing for Development: The Gap between Words and Deeds since Monterrey

The Monterrey Consensus agreed at the UN summit on Financing for Development in 2002 promised a breakthrough in terms of donor generosity, aid effectiveness and new means of financing. However, the development orientation of world leaders proved to be short‐lived. This is even though our evaluation reveals progress since Monterrey in some areas, notably debt relief and private (FDI) flows. Calls for substantially scaling‐up regular aid had less effect than envisaged, and financial innovations have contributed only marginally to overall development financing so far. Nor is there much progress from the perspective of critics focusing on the quality of aid. In particular, the targeting of aid according to need and merit leaves much to be desired. The gap between words and deeds continues to be wide with regard to aid proliferation and donor co‐ordination as well.     

Aid Harmonisation and Alignment: Bridging the Gaps between Reality and the Paris Reform Agenda

The Paris agenda on aid effectivess emphasises support for recipient‐owned development strategies, increased use of national systems and more co‐ordinated and predictable donor actions. Monitorable targets for such behaviour have been agreed, but the connections with expected development benefits are as yet unproven. Alternative views of the rationale for aid agencies, transaction costs and conditionality, in which there is rarely complete preference alignment and trust between donors and recipients, introduce further complications. Four additional policy measures are identified which cannot be managed easily within the Paris agenda: better international balancing of aid allocations; new instruments with longer commitment horizons; liquidity arrangements to enable ‘scaling up’ across several countries; and independent aid rating institutions linked to market‐like sanctions.     

The PRSP Approach and the Illusion of Improved Aid Effectiveness: Lessons from Bolivia,Honduras and Nicaragua

Since 1999, poor countries that want to qualify for concessionary IMF loans and debt relief must elaborate and implement Poverty Reduction Strategy Papers. Donors claim that the PRSP approach will increase aid effectiveness since PRSPs will enhance broad country ownership and lead to better ‘partnership’ with donors, implying more donor co‐ordination under government leadership. By examining the experiences of Bolivia, Honduras and Nicaragua, this article finds that the results are disappointing. The article also shows that, by emphasising rational planning and ignoring politics, the PRSP approach has unintended and sometimes harmful consequences. This leads to recommendations for changes of the approach.     

Analysing local perceptions of post‐conflict and post‐floods livelihood interventions in Swat,Pakistan

The Swat valley in Pakistan’s Khyber Pakhtunkhwa (KP) province was affected by a protracted conflict and super flood between 2007 and 2010. This article explores local perceptions of the Swat response, which presented complex challenges for rehabilitation and livelihood recovery of affected communities. This study examines local perceptions of how non‐governmental organizations (NGOs) and government response addressed livelihood revival needs, considers questions relating to the nature and dynamics of the conflict and floods and reflects on the issues and lessons of post‐disaster relief and development. The qualitative case study was conducted between September 2010 and February 2011. Primary data were collected in 11 villages and localities from beneficiaries and non‐beneficiaries, government representatives, community leaders and programme officials involved in livelihood interventions. This article identifies the shortcomings associated with the targeted response, as well as the types of response offered in the form of beneficiary selection and elite co‐opting of aid. The response was affected by a lack of relief, recovery and development programme co‐ordination, weak institutional support and non‐prioritization of local needs. The article recommends that for effective development policy and practice, local ownership of response and recovery programmes needs to be promoted.     

Donor co‐ordination or donor confusion? How disputed facts and problem framing affect the prospects for aid harmonization

A declared commitment in international development assistance is to promote donor co‐ordination. Yet, how this objective plays out in practice, or how feasible and realistic it is, have rarely been evaluated. Using the fisheries sector as a critical case, this article explores whether two major international actors, the United Nations Food and Agriculture Organization (FAO) and the World Bank, meet the demands of policy harmonization as spelled out in the Paris Declaration on aid effectiveness. Through a systematic qualitative analysis, the article investigates whether the policies of these actors are complementary or contradictory. It also assesses how the potential challenges to harmonization can be understood and what the broader implications for aid and development policies in general might be.     

Markets,Institutions and Technology: Missing Links in Livelihoods Analysis

The benefits of livelihoods thinking and approaches are widely recognised. This article focuses on an important gap in much of the conceptualization and application of ‘livelihood approaches’— a lack of emphasis on markets and their roles in livelihood development and poverty reduction. The omission is important, as it can lead to failure to identify and act on a wider range of market, institutional and technological opportunities and constraints. An alternative conceptualisation is proposed, with markets as one particular set of institutional mechanisms for co‐ordination and exchange in an economy. It is argued that more explicit attention to interactions between institutions, technology and assets in livelihood analysis may be valuable in conceptualising and managing programmes for livelihood development and poverty reduction.     

What future for the Global Aid for Trade Initiative? Towards an assessment of its achievements and limitations

As with any form of contemporary global governance, the impact of the global Aid for Trade Initiative (2006) has been mixed. However, to dismiss it as a failure would be premature. The co‐ordination system established was based on best‐practice techniques of governance in a diverse non‐hierarchical environment, such as the international development community. This form of co‐operation cannot overcome global economic and political asymmetries, but it can be effective in several respects. In particular, the Initiative led to increased funding for AfT and kick‐started a range of initiatives and technical advances; while the monitoring process has evolved significantly to give voice to new actors and issues. Although the future of the AfT Initiative is uncertain, its achievements merit careful consideration.     

‘Caring/Sharing’: Gender and Horizontal Co‐ordination in the Workplace

Classical organizational theory assumes a hierarchical structure and the vertical co‐ordination of work. Horizontal co‐ordination between organizational participants is currently recognized only at upper and middle organizational levels. This qualitative study of workers at the lowest rungs of the organizational hierarchy finds that they do engage in horizontal co‐ordination by working together in ways that are invisible. This study also finds differences between same‐sex work groups in how they perceive working together. The caring/sharing phenomenon describes the sharing of work, and the implementation of horizontal co‐ordination, undertaken in the context of caring relationships among work colleagues, all of whom were women. Women and men working in same‐sex work groups differ in their conceptions of how those work groups form and how they function. The findings from this study indicate that common conceptions of teams and teamwork may in fact be male norms of horizontal co‐ordination.     

Politics,Evidence and the New Aid Agenda

Based on study of (a) the HIPC debt relief initiative, (b) the linking of aid to policy conditionality and (c) transactions‐cost arguments in favour of programme aid, this article argues that major elements in the new aid agenda may not be well‐based empirically. This is partly because of inadequate knowledge, but particularly because the evidence often conflicts with political preferences. As a result, it is likely that large amounts of aid resources are being misdirected. Ways are suggested of narrowing the gap between evidence‐based and ‘political’ decision‐making. In the meantime, donors should avoid diverting more aid into debt relief, should roll back their reliance on policy conditionality, and should exercise pragmatic caution in the expansion of programme assistance.     

Can the New Deal solve the old problem of aid orphans and darlings? Aid effectiveness in fragile states

The New Deal for Engagement in Fragile States marks an important ideological shift in development co‐operation. Despite this progress, no practical response has been found to the problem of aid co‐ordination. This article traces the issue of aid allocation and highlights lessons from the ‘aid orphan’ and ‘aid darling’ debate. It examines the significant, yet under‐reported, policy process of the New Deal. It argues that deeper engagement with the concept of trust, and renewed focus on the political elements of the agreement, should be key priorities for the International Dialogue on Peacebuilding and Statebuilding.     

Gendered Leadership: The Effects of Female Development Agency Leaders on Foreign Aid Spending

This article examines the effects of gender on the leadership of bilateral development aid agencies, particularly their official development assistance (ODA) allocations toward gender‐related programming. Drawing on earlier research on gendered leadership, the article tests the hypothesis that female director generals (DGs) and ministers responsible for aid agencies will allocate more ODA than their male counterparts toward gender programming. This existing literature on gendered leadership is divided: some scholars argue that women and men have distinct leadership styles on account of their gender, while others argue that the only distinguishing factor is the institutional context in which they lead. Drawing on data collected on aid flows and agency leadership within the major Western aid donors of the Organisation for Economic Co‐operation and Development (OECD) Development Assistance Committee (DAC) over the period from 1995 through 2009, we use pooled time series analysis to examine the effects of gendered leadership on aid allocation. Our analysis reveals a tendency for female DGs and ministers to focus ODA on gender‐mainstreaming programs, while male DGs focus ODA on gender‐focused programs. We argue that these divergent priorities reflect the women's desire to reform gendered power structures within their respective aid agencies, and the men's desire to maintain existing gender power structures from which they benefit.     

Policy Coherence for Sustainable Agricultural Development: Uncovering Prospects and Pretence within the Swedish Policy for Global Development

Within the European Union, promotion of ‘policy coherence’ is intended to improve co‐ordination across sectors and groups of professionals, who make competing claims for agricultural development in low‐income countries. This article examines the prospects for stakeholders in Sweden to implement such a policy, drawing on experiences from the launch of a national multi‐stakeholder platform with the participation of 99 organisations. Its findings demonstrate institutional fragmentation and struggles for legitimacy, with the internationally heralded Swedish Policy for Global Development operated largely as a tokenistic instrument, legitimised by the pretence of stakeholder engagement. It argues for improved institutional support to facilitate cross‐sectoral dialogues to deconstruct social boundaries which are no longer relevant.     

Bringing Aid Management Closer to Reality: The Experience of Danish Bilateral Development Cooperation

In 2003, the Danish Ministry of Foreign Affairs undertook a decentralisation of the management of bilateral aid to the embassies in major partner countries. However, while decentralisation appears to live up to the principles of the Paris Declaration on Aid Effectiveness, the specific delegation of responsibilities as well as the political context of aid management may jeopardise the intended contribution to effective development co‐operation. This article explores some factors potentially limiting the usefulness of decentralised aid management in the Danish case, and discusses certain intra‐organisational dynamics and extra‐organisational pressures influencing ‘donor effectiveness’.     

The Quest for Aid Complementarity: Reforming Co‐operation between Nordic+ Donors and NGOs

Aid fragmentation is a maddening problem in the aid business. NGOs are part and parcel of this fragmentation problem; hence calls for more complementarity between Northern NGOs and (their) governments have led to a series of co‐funding reforms. This article analyses the co‐funding reforms of the Nordic+ donors and situates them within the broader evolutions that have taken place in donor‐NGO relations in these countries. It finds that these donors have interpreted complementarity in very different and even contradictory ways. Where some require NGOs to develop activities within the confines of the official bilateral strategy (intensive complementarity), others allow NGOs to do very different things (extensive complementarity).     

Brazil and the Shifting Consensus on Development Co‐operation: Salutary Diversions from the ‘Aid‐effectiveness’ Trail?

Emerging economies emphasise horizontality and mutual opportunity in their relationship with developing countries, promising an alternative to the failings of traditional North‐South co‐operation. This article draws on research on Brazil's technical co‐operation and its health dimension to compare the Brazilian model with established aid‐effectiveness' principles and to discuss the appropriateness of the latter as standards against which to appraise emerging donors' co‐operation. The analysis shows that, despite progress towards greater dialogue between traditional and emerging donors, the ‘aid‐effectiveness’ framework still falls short of capturing the idiosyncrasies of South‐South co‐operation and therefore offers an incomplete international standard on how best to conduct development co‐operation.     

Institutional Environments,Sociopolitical Processes,and Health Movement Organizations: The Growth of Self‐Help/Mutual‐Aid1

This study examines the relationship between sociopolitical processes and health social movement organization formation. Two central research questions are posed: How do self‐help/mutual‐aid institutional environments characterized by professional actors, the state, and social movements influence organizational formation, and do these influences grow stronger or weaker as the self‐help/mutual‐aid movement matures? Analyses comparing the impact of institutional factors such as physician hegemony and autonomy, professional affiliation, state spending, and political ties on self‐help/mutual‐aid founding rates reveal negative effects of professionals but positive effects of the state. These relationships tend to grow stronger as the movement matures. For example, declining professional authority increasingly eases organizational foundings during movement maturity as does the beneficial impact on formation of state expansion in health markets and political ties. Implications are discussed.     

From Poverty Reduction to Mutual Interests? The Debate on Differentiation in EU Development Policy

Aid to middle‐income countries has become one of the most discussed issues among development researchers and in the current modernisation of the development policy of the European Union. This article argues that the question needs to be dealt with in the context of two interlinked challenges: (i) the need to reconceptualise dominant approaches to global poverty reduction beyond national income, and (ii) the growing range of global challenges and the strategically important role of middle‐income countries. For EU development policy, the implications are twofold: (i) a better‐co‐ordinated cross‐country division of labour, and (ii) a diversification of objectives towards a global rationale of development policy involving closer co‐ordination with other EU external policies.     

Picking Winners? Evidence on NATO’s Enlargement Strategy

The effectiveness of NATO conditionality for institutional reforms is highly controversial. Some papers argue that any effect this conditionality might have had may be due to endogeneity effects, i.e. NATO may have picked the winners. We argue that this is not the case. First, NATO-Mazedonia relations provide a case in point. Macedonia was granted entry into the Membership Action Plan (MAP) in 1999 due to country’s strategic importance. Only after the Ohrid agreement, effective conditionality set in and marked a switch in NATO strategy from security only towards institution building. Second, this is supported by econometric evidence based on panel data. An event study reveals that entry into NATO’s accession process was mainly driven by neighbourhood and good relations with the West. We conclude that empirical evidence clearly supports a stronger role of NATO’s political agenda, i.e., low entry barriers but strict accession conditionality.     

Will ‘Emerging Donors’ Change the Face of International Co‐operation?

Responding to the recent upsurge of interest in ‘emerging donors’, this article argues that the DAC share of aid is likely to decline only slowly from what is a historically high level, and at least some non‐DAC donors are likely to see DAC approaches and norms as relevant. Nevertheless, low‐income countries seem likely to have a wider range of financing options. Three key risks are that: they prejudice their debt situation by borrowing on inappropriate terms; they use low‐conditionality aid to postpone necessary adjustment; and they waste resources on unproductive investments. DAC members should develop constructive dialogue with other bilateral donors based on recognition that sustainable development and poverty reduction should be the core purpose of aid.     

Overcoming Market Constraints on Pro‐Poor Agricultural Growth in Sub‐Saharan Africa

In sub‐Saharan Africa, there is fairly broad agreement that increased investment in key public goods such as roads and communications infrastructure, agricultural research and water control will be required if revitalised agricultural development is to take place. However, it has proved more difficult to reach agreement on what needs to be done to improve the performance of agricultural markets. In this article we set out an agenda for investment and policy reform in this area, providing a brief theoretical examination of the co‐ordination problems involved before examining in turn demand and supply constraints affecting smallholder farmers, and policies for price stabilisation and the co‐ordination of support services. We also argue that increased attention needs to be paid to governance issues.