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Innovative ways of making aid effective in Ghana: tied aid versus direct budgetary support

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  • Peter Quartey

    (Institute of Statistical Social and Economic Research, University of Ghana, Accra, Ghana)

Abstract

In 2003, the government of Ghana and its development partners agreed on an aid package dubbed the multi-donor budgetary support (MDBS), which would ensure continuous flow of aid to finance the government's poverty related expenditures. This paper examines the MDBS, specifically focusing on how it overcomes the problems of tied aid and other project support. It concludes that the MDBS is innovative and could work in Ghana, but it would need trust and a well-designed, coordinated effort on the part of the government of Ghana and its development partners. Second, its effectiveness would depend crucially on measures to help reduce the debt burden, so that the government would not be compelled to use aid inflows to service its debt. Finally, the MDBS could be more effective if it did not have to operate alongside other project support. Copyright © 2005 John Wiley & Sons, Ltd.

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  • Peter Quartey, 2005. "Innovative ways of making aid effective in Ghana: tied aid versus direct budgetary support," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(8), pages 1077-1092.
    • Handle: RePEc:wly:jintdv:v:17:y:2005:i:8:p:1077-1092
    DOI: 10.1002/jid.1260
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    2. Faruq Umar, Quadri, 2019. "A Re-Examination of the Relationship between Foreign Flows and Economic Growth in LLDCs: Dynamic Fixed Effects (DFE)," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 6(2), pages 169-179.
    3. Robert Darko Osei & Freda Asem & George Domfe, 2013. "The Political Economy Dimensions of Macroeconomic Management of Aid in Ghana," WIDER Working Paper Series wp-2013-106, World Institute for Development Economic Research (UNU-WIDER).
    4. Gitaru, Kelvin, 2015. "Impact Of Foreign Aid On Economic Growth," MPRA Paper 68145, University Library of Munich, Germany, revised 30 Jun 2016.
    5. Vaughn F. Graham, 2017. "Toward a Conceptual Expansion of Ownership and Post‐2015 Global Development Policy: Illustrations from the Jamaican Experience," Development Policy Review, Overseas Development Institute, vol. 35(3), pages 373-395, May.
    6. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    7. Tonny Odokonyero & Robert Marty & Tony Muhumuza & Alex T. Ijjo & Godfrey Owot Moses, 2018. "The impact of aid on health outcomes in Uganda," Health Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 733-745, April.
    8. Kolavalli, Shashi L. & Birner, Regina & Benin, Samuel & Horowitz, Leah & Babu Suresh Chandra & Asenso-Okyere, Kwadwo & Thompson, Nii Moi & Poku, John, 2009. "Public expenditure and institutional review: Ghana’s ministry of food and agriculture," GSSP working papers 17, International Food Policy Research Institute (IFPRI).
    9. Asem, Freda & Domfe, George & Osei, Robert, 2013. "The Political Economy Dimensions of Macroeconomic Management of Aid in Ghana," WIDER Working Paper Series 106, World Institute for Development Economic Research (UNU-WIDER).
    10. Acharya, Arnab & Martínez-Álvarez, Melisa, 2012. "Aid Effectiveness in the Health Sector," WIDER Working Paper Series 069, World Institute for Development Economic Research (UNU-WIDER).
    11. Hennessy, Jack & Mortimer, Duncan & Sweeney, Rohan & Woode, Maame Esi, 2023. "Donor versus recipient preferences for aid allocation: A systematic review of stated-preference studies," Social Science & Medicine, Elsevier, vol. 334(C).
    12. Kolavalli, Shashidhara & Birner, Regina & Benin, Samuel & Horowitz, Leah & Babu, Suresh & Asenso-Okyere, Kwadwo & Thompson, Nii Moi & Poku, John, 2010. "Institutional and public expenditure review of Ghana’s Ministry of Food and Agriculture," IFPRI discussion papers 1020, International Food Policy Research Institute (IFPRI).

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