When Do Donors Trust Recipient Country Systems?

The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. The target is premised on a view that country systems are strengthened when donors trust recipients to manage ai...

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Main Author:	Knack, Stephen
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	AID AID AGENCIES AID FLOWS AID PROGRAMS ANECDOTAL EVIDENCE AUTONOMY BILATERAL DONOR COMPANION DEVELOPMENT AID DEVELOPMENT ASSISTANCE DEVELOPMENT BANKS DEVELOPMENT COOPERATION DEVELOPMENT ISSUES DEVELOPMENT OBJECTIVES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DEVELOPMENT STRATEGIES DISEASES ECONOMIC DEVELOPMENT ECONOMIC GROWTH EXCLUSION FIRMS HUMANITARIAN AID INCLUSION INTERNATIONAL AID INTERNATIONAL DEVELOPMENT MIDDLE-INCOME COUNTRIES MULTILATERAL DEVELOPMENT BANK MULTILATERAL DEVELOPMENT BANKS NATIONAL DEVELOPMENT NATURAL RESOURCE PARTNER COUNTRY PARTNERSHIP PRIORITIES PRIVATE COMPANIES SCHOOLS SOCIETY STD SUPPLIERS TECHNICAL ASSISTANCE TOLERANCE TUBERCULOSIS
Online Access:	http://documents.worldbank.org/curated/en/2012/04/16194779/donors-trust-recipient-country-systems-donors-trust-recipient-country-systems http://hdl.handle.net/10986/6022

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recordtype	oai_dc
spelling	okr-10986-60222021-04-23T14:02:24Z When Do Donors Trust Recipient Country Systems? Knack, Stephen AID AID AGENCIES AID FLOWS AID PROGRAMS ANECDOTAL EVIDENCE AUTONOMY BILATERAL DONOR COMPANION DEVELOPMENT AID DEVELOPMENT ASSISTANCE DEVELOPMENT BANKS DEVELOPMENT COOPERATION DEVELOPMENT ISSUES DEVELOPMENT OBJECTIVES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DEVELOPMENT STRATEGIES DISEASES ECONOMIC DEVELOPMENT ECONOMIC GROWTH EXCLUSION FIRMS HUMANITARIAN AID INCLUSION INTERNATIONAL AID INTERNATIONAL DEVELOPMENT MIDDLE-INCOME COUNTRIES MULTILATERAL DEVELOPMENT BANK MULTILATERAL DEVELOPMENT BANKS NATIONAL DEVELOPMENT NATURAL RESOURCE PARTNER COUNTRY PARTNERSHIP PRIORITIES PRIVATE COMPANIES SCHOOLS SOCIETY STD SUPPLIERS TECHNICAL ASSISTANCE TOLERANCE TUBERCULOSIS The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. The target is premised on a view that country systems are strengthened when donors trust recipients to manage aid funds, but undermined when donors manage aid through their own separate parallel systems. This study provides an analytical framework for understanding donors' decisions to trust or bypass country systems. Empirical tests are conducted using data from three OECD-DAC surveys designed to monitor progress toward Paris Declaration goals. Tests show that a donor's use of the recipient country's systems is positively related to: (1) the donor's share of aid provided to the recipient (a proxy for the donor's reputational stake in the country's development); (2) perceptions of corruption in the recipient country (a proxy for the trustworthiness or quality of the country's systems); and (3) public support for aid in the donor country (a proxy for the donor's risk tolerance). Findings are robust to corrections for potential sample selection, omitted variables or endogeneity bias. 2012-04-27T07:43:45Z 2012-04-27T07:43:45Z 2012-04 http://documents.worldbank.org/curated/en/2012/04/16194779/donors-trust-recipient-country-systems-donors-trust-recipient-country-systems http://hdl.handle.net/10986/6022 English Policy Research Working Paper ; No. 6019 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AID AID AGENCIES AID FLOWS AID PROGRAMS ANECDOTAL EVIDENCE AUTONOMY BILATERAL DONOR COMPANION DEVELOPMENT AID DEVELOPMENT ASSISTANCE DEVELOPMENT BANKS DEVELOPMENT COOPERATION DEVELOPMENT ISSUES DEVELOPMENT OBJECTIVES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DEVELOPMENT STRATEGIES DISEASES ECONOMIC DEVELOPMENT ECONOMIC GROWTH EXCLUSION FIRMS HUMANITARIAN AID INCLUSION INTERNATIONAL AID INTERNATIONAL DEVELOPMENT MIDDLE-INCOME COUNTRIES MULTILATERAL DEVELOPMENT BANK MULTILATERAL DEVELOPMENT BANKS NATIONAL DEVELOPMENT NATURAL RESOURCE PARTNER COUNTRY PARTNERSHIP PRIORITIES PRIVATE COMPANIES SCHOOLS SOCIETY STD SUPPLIERS TECHNICAL ASSISTANCE TOLERANCE TUBERCULOSIS
spellingShingle	AID AID AGENCIES AID FLOWS AID PROGRAMS ANECDOTAL EVIDENCE AUTONOMY BILATERAL DONOR COMPANION DEVELOPMENT AID DEVELOPMENT ASSISTANCE DEVELOPMENT BANKS DEVELOPMENT COOPERATION DEVELOPMENT ISSUES DEVELOPMENT OBJECTIVES DEVELOPMENT POLICY DEVELOPMENT RESEARCH DEVELOPMENT STRATEGIES DISEASES ECONOMIC DEVELOPMENT ECONOMIC GROWTH EXCLUSION FIRMS HUMANITARIAN AID INCLUSION INTERNATIONAL AID INTERNATIONAL DEVELOPMENT MIDDLE-INCOME COUNTRIES MULTILATERAL DEVELOPMENT BANK MULTILATERAL DEVELOPMENT BANKS NATIONAL DEVELOPMENT NATURAL RESOURCE PARTNER COUNTRY PARTNERSHIP PRIORITIES PRIVATE COMPANIES SCHOOLS SOCIETY STD SUPPLIERS TECHNICAL ASSISTANCE TOLERANCE TUBERCULOSIS Knack, Stephen When Do Donors Trust Recipient Country Systems?
relation	Policy Research Working Paper ; No. 6019
description	The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. The target is premised on a view that country systems are strengthened when donors trust recipients to manage aid funds, but undermined when donors manage aid through their own separate parallel systems. This study provides an analytical framework for understanding donors' decisions to trust or bypass country systems. Empirical tests are conducted using data from three OECD-DAC surveys designed to monitor progress toward Paris Declaration goals. Tests show that a donor's use of the recipient country's systems is positively related to: (1) the donor's share of aid provided to the recipient (a proxy for the donor's reputational stake in the country's development); (2) perceptions of corruption in the recipient country (a proxy for the trustworthiness or quality of the country's systems); and (3) public support for aid in the donor country (a proxy for the donor's risk tolerance). Findings are robust to corrections for potential sample selection, omitted variables or endogeneity bias.
format	Publications & Research :: Policy Research Working Paper
author	Knack, Stephen
author_facet	Knack, Stephen
author_sort	Knack, Stephen
title	When Do Donors Trust Recipient Country Systems?
title_short	When Do Donors Trust Recipient Country Systems?
title_full	When Do Donors Trust Recipient Country Systems?
title_fullStr	When Do Donors Trust Recipient Country Systems?
title_full_unstemmed	When Do Donors Trust Recipient Country Systems?
title_sort	when do donors trust recipient country systems?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2012/04/16194779/donors-trust-recipient-country-systems-donors-trust-recipient-country-systems http://hdl.handle.net/10986/6022
_version_	1764397131770101760

When Do Donors Trust Recipient Country Systems?

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