Foreign Aid Transaction Costs: What Are They and When Are They Minimised?

Development Policy Review

Volumn 30, Issue 3, 2012, Pages 283-304

  Paul, Elisabeth ^a   Vandeninden, Frieda ^a,b  

^a UNIVERSITY OF LIÈGE   (Belgium)

^b MAASTRICHT UNIVERSITY   (Netherlands)

Author keywords

Aid effectiveness; Aid modalities; Transaction costs

Indexed keywords

INTERNATIONAL AID; TRANSACTION COST;

EID: 84859412776     PISSN: 09506764     EISSN: 14677679     Source Type: Journal    
DOI: 10.1111/j.1467-7679.2012.00577.x     Document Type: Article

References (38)

1. Acharya, A., Fuzzo de Lima, A., and Moore, M. (2006) 'Proliferation and Fragmentation: Transaction costs and the value of aid'. Journal of Development Studies 42 (1): 1-21.
2. Allen, D. W. (1991) 'What Are Transaction Costs?' Research in Law and Economics 14: 1-18.
3. Amis, P., Green, L. and Hubbard, M. (2005) 'Measuring Aid Costs: What Has Been Learnt and What Still Needs to be Learnt', Public Administration and Development 25 (5): 373-8.
4. Arrow, Kenneth J. (1969) 'The Organization of Economic Activity: Issues pertinent to the choice of market versus nonmarket allocation', in The Analysis and Evaluation of Public Expenditure: The PPB System. Vol. 1. Washington, DC: US Government Printing Office.
5. Bourguignon, F. and Sundberg, M. (2007) 'Is Foreign Aid Helping? Aid Effectiveness: Opening the Black Box', American Economic Review 97 (2): 316-21.
6. Burnside, C. and Dollar, D. (2000) 'Aid, Policies, and Growth', American Economic Review 90 (4): 847-68.
7. Coase, R. (1961) 'The Problem of Social Costs', Journal of Law and Economics 3 (1): 1-44.
8. Coase, R. (1937) 'The Nature of the Firm', Economica 4 (16): 386-405.
9. Department for International Development (DFID) (2004) Poverty Reduction Budget Support. DFID Policy Paper. London: DFID.
10. Devarajan, S., and Swaroop, V. (1998) The Implications of Foreign Aid Fungibility for Development Assistance. Policy Research Working Paper No. 2022. Washington, DC: World Bank.
11. Dyer, K. (2005) The Cost of Poverty: Transaction Costs and the Struggle to Make Aid Work in the Education Sector in Tanzania. Human Development Report Office Occasional Paper. Arusha: IMG/United Nations Development Programme.
12. Easterly, W., Levine, R. and Roodman, D. (2003) New Data, New Doubts: A Comment on Burnside and Dollar's 'Aid, Policies, and Growth' (2000). NBER Working Paper 9846. Cambridge, MA: National Bureau of Economic Research.
13. EuropeAid (2007) Support to Sector Programmes Covering the Three Financing Modalities: Sector Budget Support, Pool Funding and EC Project Procedures. Tools and Methods Series, Guidelines No. 2. Brussels: European Commission.
14. European Commission (EC) (2007) 'Guidelines on the Programming, Design and Management of General Budget Support', in Aid Delivery Methods. Brussels: EC.
15. Foster, M. and Leavy, J. (2001) The Choice of Financial Aid Instruments. Working Paper 158. London: Overseas Development Institute.
16. High-Level Forum on Aid Effectiveness (2005) Paris Declaration on Aid Effectiveness: Ownership, Harmonisation, Alignment, Results and Mutual Accountability. Paris: OECD.
17. High-Level Forum on Harmonization (2003) Rome Declaration on Harmonization (25 February). Paris: OECD.
18. IDD and Associates (2006) Joint Evaluation of General Budget Support 1994-2004: Synthesis Report. Birmingham: International Development Department, University of Birmingham.
19. Jobin, D. (2008) 'A Transaction Cost-Based Approach to Partnership Performance Evaluation', Evaluation 14 (4): 437-65.
20. Killick, T. (2004) 'Politics, Evidence and the New Aid Agenda', Development Policy Review 22 (1): 5-29.
21. Knack, S. and Rahman, A. (2004) Donor Fragmentation and Bureaucratic Quality in Aid Recipients. Policy Research Working Paper 3186. Washington, DC: World Bank.
22. Lavergne, R. and Alba, A. (2003) CIDA Primer on Programme-Based Approaches. Ottawa: Canadian International Development Agency (CIDA).
23. Lawson, A. (2009) 'Evaluating the Transaction Costs of Implementing the Paris Declaration'. Concept Paper submitted by Fiscus Public Finance Consultants to the Secretariat for the Evaluation of the Paris Declaration, November.
24. Martens, B.; Mummert, U.; Murrell, P. and Seabright, P. (2002) The Institutional Economics of Foreign Aid. Cambridge: Cambridge University Press.
25. Martinez, J. (2006) Implementing a Sector-wide Approach in Health: The case of Mozambique. Technical Approach Paper. London: HLSP Institute.
26. North, D. (1990) Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.
27. Organisation for Economic Co-operation and Development (OECD) (2006) Harmonising Donor Practices for Effective Aid Delivery - Vol. 2: Budget Support, Sector Wide Approaches and Capacity Development in Public Financial Management. DAC Guidelines and Reference Series. Paris: OECD.
28. Organisation for Economic Co-operation and Development (OECD) (2005) Survey on Harmonisation and Alignment: Progress in Implementing Harmonisation and Alignment and 14 Partner Countries. Paris: OECD, Development Assistance Committee.
29. Organisation for Economic Co-operation and Development (OECD) (2003) Harmonising Donor Practices for Effective Aid Delivery. DAC Guidelines, and Reference Series. Paris: OECD.
30. Paul, E. (2006) 'A Survey of the Theoretical Economic Literature on Foreign Aid', Asian-Pacific Economic Literature 20 (1): 1-17.
31. Paul, E. (2002) 'The Poverty Reduction Strategy Paper (PRSP): Incarnation of a new development aid paradigm or a SAP sub-product? Review of the PRSP process in Benin'. Paper presented at International Conference on 'Africa and the Development Challenges of the New Millennium', organised by TWN Africa/Codesria, Accra, 23-26 April.
32. United Nations Development Programme (UNDP) and Department for International Development (DFID) (2000) Aid Transaction Costs in Vietnam. Final Report. Hanoi: UNDP and DFID.
33. United Nations International Conference on Financing for Development (2002) Monterrey Consensus on Financing for Development, Monterrey, 18-22 March.
34. Vandeninden, F. (2005) 'Une analyse de la performance des modes de gestion de l'aide au développement: L'approche sectorielle permet-elle de réduire les coûts de transaction liés à la gestion de l'aide?'. Bachelor thesis, Liège: Université de Liège, HEC-Ecole de Gestion.
35. Watt, P. (2005) Transaction Costs in Aid: Case Studies of Sector Wide Approaches in Zambia and Senegal. UNDP Human Development Report Office Occasional Paper. New York: UNDP.
36. Williamson, O. E. (1993) The Economic Analysis of Institutions and Organisations in General and with respect to Country Studies. OECD Working Paper 133. Paris: OECD.
37. Williamson, O. E. (1985) The Economic Institutions of Capitalism: Firms, markets, relational contracting. New York: Free Press.
38. World Bank (1998) Assessing Aid: What Works, What Doesn't, and Why. Policy Research Report. Oxford and New York: Oxford University Press for the World Bank.