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Australian aid projects: What works, where projects work and how Australia compares

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  • Terence Wood
  • Sabit Otor
  • Matthew Dornan

Abstract

In this article, we conduct the first‐ever systematic study of Australian aid project appraisals. Using a previously unstudied data set of appraisals, we study project and recipient country factors influencing Australian aid effectiveness. We find effectiveness varies more within recipient countries than between countries. We find larger projects are more likely to be successful. Humanitarian projects are more successful on average than development projects. We also find that Australian aid is less likely to succeed in the Pacific than elsewhere, a significant finding given Australia's increased focus on the region. Finally, we show that Australia does not appear to be an unusual donor: when we compare Australia with other donors in a global data set, we find similar variables are correlated with effectiveness for most donors, including Australia.

Suggested Citation

  • Terence Wood & Sabit Otor & Matthew Dornan, 2020. "Australian aid projects: What works, where projects work and how Australia compares," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 7(2), pages 171-186, May.
    • Handle: RePEc:bla:asiaps:v:7:y:2020:i:2:p:171-186
    DOI: 10.1002/app5.300
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    References listed on IDEAS

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    1. Feeny, Simon & Vuong, Vu, 2017. "Explaining Aid Project and Program Success: Findings from Asian Development Bank Interventions," World Development, Elsevier, vol. 90(C), pages 329-343.
    2. Denizer, Cevdet & Kaufmann, Daniel & Kraay, Aart, 2013. "Good countries or good projects? Macro and micro correlates of World Bank project performance," Journal of Development Economics, Elsevier, vol. 105(C), pages 288-302.
    3. Kilby, Christopher, 2000. "Supervision and performance: the case of World Bank projects," Journal of Development Economics, Elsevier, vol. 62(1), pages 233-259, June.
    4. David Bulman & Walter Kolkma & Aart Kraay, 2017. "Good countries or good projects? Comparing macro and micro correlates of World Bank and Asian Development Bank project performance," The Review of International Organizations, Springer, vol. 12(3), pages 335-363, September.
    5. Isham, Jonathan & Kaufmann, Daniel & Pritchett, Lant H, 1997. "Civil Liberties, Democracy, and the Performance of Government Projects," The World Bank Economic Review, World Bank, vol. 11(2), pages 219-242, May.
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    Cited by:

    1. Eilers, Yota & Kluve, Jochen & Langbein, Jörg & Reiners, Lennart, 2023. "Volume, Risk, Complexity: What Makes Development Finance Projects Succeed or Fail?," IZA Discussion Papers 16691, Institute of Labor Economics (IZA).
    2. Matt Andrews, 2022. "What is public policy success, especially in development?," CID Working Papers 415, Center for International Development at Harvard University.
    3. Terence Wood & Sabit Otor & Matthew Dornan, 2022. "Why are aid projects less effective in the Pacific?," Development Policy Review, Overseas Development Institute, vol. 40(3), May.

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