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Can process conditionality enhance aid effectiveness?

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  • Carsten Hefeker
  • Katharina Michaelowa

Abstract

Can process conditionality enhance poverty reduction in developing countries? We address this question in a political-economic framework with political distortions on the recipient and the donor side. Process conditionality is a useful tool only if the international financial institutions hold all necessary information to assess the political situation in recipient countries and to select the true representatives of the poor into a participatory process. If they do not hold this information or if bureaucratic interests reduce their incentive to acquire this information, process conditionality loses its effectiveness. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Carsten Hefeker & Katharina Michaelowa, 2005. "Can process conditionality enhance aid effectiveness?," Public Choice, Springer, vol. 122(1), pages 159-175, January.
    • Handle: RePEc:kap:pubcho:v:122:y:2005:i:1:p:159-175
    DOI: 10.1007/s11127-005-5791-3
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    References listed on IDEAS

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    5. Svensson, Jakob, 2003. "Why conditional aid does not work and what can be done about it?," Journal of Development Economics, Elsevier, vol. 70(2), pages 381-402, April.
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    Cited by:

    1. Yooneui Kim & Youngwan Kim, 2021. "The autonomy of international organizations? The analysis of major powers’ influence over the World Bank’s aid policies," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 24(3), pages 224-240, September.
    2. Theocharis Grigoriadis, 2013. "Aid effectiveness and imperfect monitoring: EU development aid as Prisoner’s Dilemma," Rationality and Society, , vol. 25(4), pages 489-511, November.
    3. Carsten Hefeker, 2006. "Project Aid or Budget Aid? The Interests of Governments and Financial Institutions," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 241-252, May.
    4. Wolfgang Mayer & Alex Mourmouras, 2008. "IMF conditionality: An approach based on the theory of special interest politics," The Review of International Organizations, Springer, vol. 3(2), pages 105-121, June.
    5. Ruxanda Berlinschi, 2010. "Reputation concerns in aid conditionality," The Review of International Organizations, Springer, vol. 5(4), pages 433-459, December.
    6. Axel Dreher & Katharina Michaelowa, 2008. "The political economy of international organizations," The Review of International Organizations, Springer, vol. 3(4), pages 331-334, December.

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