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Giving Aid EffectivelyThe Politics of Environmental Performance and Selectivity at Multilateral Development Banks$
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Mark T Buntaine

Print publication date: 2016

Print ISBN-13: 9780190467456

Published to Oxford Scholarship Online: June 2016

DOI: 10.1093/acprof:oso/9780190467456.001.0001

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The Politics of Aid Effectiveness

The Politics of Aid Effectiveness

(p.25) 2 The Politics of Aid Effectiveness
Giving Aid Effectively

Mark T. Buntaine

Oxford University Press

One of the key tenets of aid effectiveness is allocating projects and funds to the countries that have the incentives and capacity to use them for good purposes. This chapter reviews the research that led to this conclusion and argues that applying this approach strictly has been unsuccessful and leads to a number of downsides. Moving toward allocation that increases funding for successful projects and decreases funding for unsuccessful projects would allow donors to recognize and respond to pockets of aligned incentives and capacity within individual recipient countries. This chapter outlines the potential of selectivity practiced within country portfolios and the ways that it would fit within the current processes used to allocate development and environmental assistance at the multilateral development banks.

Keywords:   aid effectiveness, allocation, selectivity, conditionality, donor practice, performance data, country portfolio, bilateral donor, multilateral donor

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