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Governance or Poverty Reduction? Assessing Budget Support in Nicaragua

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  • Geske Dijkstra

Abstract

General Budget Support (GBS) is assumed to lead to more effective poverty reduction through non-earmarking of the money and through recipient country ownership. A second and more hidden objective of GBS, however, is to influence policies and governance of recipient countries. This article develops an evaluation framework that takes the tensions between these two objectives into account. It then assesses the results of GBS in Nicaragua under two administrations. It concludes that for most donors, the aim of improving governance was more important than poverty reduction, in both government periods, thus reducing the effect of GBS on poverty reduction. In addition, donor influence on governance was limited.

Suggested Citation

  • Geske Dijkstra, 2013. "Governance or Poverty Reduction? Assessing Budget Support in Nicaragua," Journal of Development Studies, Taylor & Francis Journals, vol. 49(1), pages 110-124, January.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:1:p:110-124
    DOI: 10.1080/00220388.2012.713468
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    Cited by:

    1. François Bourguignon & Jean-Philippe Platteau, 2013. "Optimal Discipline in Donor-Recipient Relationships -Reframing the Aid Effectiveness Debate," Working Papers halshs-00960570, HAL.
    2. Kaisa Alavuotunki, 2015. "General budget support, health expenditures, and neonatal mortality rate," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).
    3. Kaisa Alavuotunki, 2015. "General budget support, health expenditures, and neonatal mortality rate: A synthetic control approach," WIDER Working Paper Series wp-2015-108, World Institute for Development Economic Research (UNU-WIDER).

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