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Building or Bypassing Recipient Country Systems: Are Donors Defying the Paris Declaration?

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  • Stephen Knack

Abstract

The 2005 Paris Declaration committed donors to increased use of recipient country systems for managing aid, particularly in countries with higher-quality systems. Using indicators explicitly endorsed by the Paris Declaration and covering the 2005-2010 period, this study finds a positive, significant, and robust relationship between quality of systems and their use by donors. Thus, donors appear to have modified at least some of their aid practices in ways that build rather than undermine administrative capacity and accountability mechanisms in recipient countries. However, quality of systems explains a relatively small share of the variation in their use, and there is considerable heterogeneity among donors in their use of country systems, and in their sensitivity to quality of systems.

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  • Stephen Knack, 2014. "Building or Bypassing Recipient Country Systems: Are Donors Defying the Paris Declaration?," Journal of Development Studies, Taylor & Francis Journals, vol. 50(6), pages 839-854, June.
    • Handle: RePEc:taf:jdevst:v:50:y:2014:i:6:p:839-854
    DOI: 10.1080/00220388.2014.895816
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    6. Rudolph, Alexandra, 2017. "The concept of SDG-sensitive development cooperation: implications for OECD-DAC members," IDOS Discussion Papers 1/2017, German Institute of Development and Sustainability (IDOS).
    7. Vera Z. Eichenauer & Bernhard Reinsberg, 2017. "What determines earmarked funding to international development organizations? Evidence from the new multi-bi aid data," The Review of International Organizations, Springer, vol. 12(2), pages 171-197, June.
    8. Abrams M. E. Tagem, 2023. "The dynamic effects of aid and taxes on government spending," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(6), pages 1656-1687, December.
    9. Haley J. Swedlund & Malte Lierl, 2020. "The rise and fall of budget support: Ownership, bargaining and donor commitment problems in foreign aid," Development Policy Review, Overseas Development Institute, vol. 38(S1), pages 50-69, May.
    10. Phouvanh Phommalangsy & Eileen Honan, 2017. "An analysis of donor engagement with education policy development in Lao PDR from 1991 to 2000," Development Policy Review, Overseas Development Institute, vol. 35(6), pages 823-838, November.
    11. Axel Dreher & Jenny Simon & Justin Valasek, 2021. "Optimal decision rules in multilateral aid funds," The Review of International Organizations, Springer, vol. 16(3), pages 689-719, July.
    12. Willy McCourt, 2018. "Lost in translation: The World Bank and the Paris Declaration," Development Policy Review, Overseas Development Institute, vol. 36(6), pages 649-668, October.
    13. Knack, Stephen, 2013. "It's only words : validating the CPIA governance assessments," Policy Research Working Paper Series 6526, The World Bank.
    14. Stephen Brown, 2016. "Putting Paris into practice: Foreign aid, national ownership, and donor alignment in Mali and Ghana," WIDER Working Paper Series 145, World Institute for Development Economic Research (UNU-WIDER).

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