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How Can Donors Create Incentives for Results and Flexibility for Fragile States? A Proposal for IDA - Working Paper 227

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  • Alan Gelb

Abstract

International Development Association (IDA) donors and others operating a country performance-based allocation system face two difficult problems: how to strengthen incentives to produce and document development results and how to increase flexibility for fragile states. Fragile states have the greatest need for projects, but their projects tend to rate poorly in performance-based allocations systems, which provide little incentive to produce successful projects in fragile states or other countries. This paper offers a proposal to address these issues. First, rebalance incentives to increase attention to results and to the frameworks for monitoring and evaluating them. Second, supplement performance-based allocations to fragile states through a performance fund to enable well-performing projects to be scaled up. Doing so would change the conversation about allocations to fragile states from "how much?" to "where can we show value?" and lead to a stronger and more general link between development results and development financing.

Suggested Citation

  • Alan Gelb, 2010. "How Can Donors Create Incentives for Results and Flexibility for Fragile States? A Proposal for IDA - Working Paper 227," Working Papers 227, Center for Global Development.
    • Handle: RePEc:cgd:wpaper:227
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    Cited by:

    1. 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.
    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. Tierney, Michael J. & Nielson, Daniel L. & Hawkins, Darren G. & Roberts, J. Timmons & Findley, Michael G. & Powers, Ryan M. & Parks, Bradley & Wilson, Sven E. & Hicks, Robert L., 2011. "More Dollars than Sense: Refining Our Knowledge of Development Finance Using AidData," World Development, Elsevier, vol. 39(11), pages 1891-1906.
    4. Bulman,David Janoff & Kolkma,Walter & Kraay,Aart C., 2015. "Good Countries or Good Projects ? Comparing Macro and Micro Correlates of World Bank and Asian Development Bank Project Performance," Policy Research Working Paper Series 7245, The World Bank.
    5. Maria S. Basílio, 2014. "The Determinants of Multilateral Development Banks’ Participation in Infrastructure Projects," Journal of Infrastructure Development, India Development Foundation, vol. 6(2), pages 83-110, December.

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    Keywords

    Fragile States; International Financial Institutions;

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