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UNU-WIDER WP/2012/05 How to Spend it: The organization of public spending and aid effectiveness

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A teenager wears torn rubber boots in a muddy local market in Bac Ha, Viet Nam. As of 2005 figures, half the world population—more than 3 billion people–is estimated to live on less than USD 2.50 a day. Bac Ha, Viet Nam. UN Photo/Kibae Park.

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WP/005 How to Spend it: The organization of public spending and aid effectiveness

Research and Communication on Foreign Aid
As aid diminishes in importance, donors need a capacity that enables governments to improve the quality of their public spending. In this study I suggest three such organizational innovations: independent ratings of spending systems, Independent Public Service Agencies, and Sovereign Development Funds. These constitute a new donor instrument of influencing the modalities of public spending, alongside the volume of aid. With an additional instrument donors can escape the dilemma of having more objectives than instruments. How aid is spent may become more important than how much of it is spent.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/05
Title:
WP/005 How to Spend it: The organization of public spending and aid effectiveness
Authors:
Paul Collier
Publication date:
January 2012
ISBN 13 Web:
978-92-9230-468-3
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
aid, public expenditure
JEL:
O190
Sponsor:
This working paper has been prepared within the UNU-WIDER project ‘Foreign Aid: Research and Communication (ReCom)’, directed by Tony Addison and Finn Tarp. UNU-WIDER gratefully acknowledges specific programme contributions from the governments of Denmark (Ministry of Foreign Affairs, Danida) and Sweden (Swedish International Development Cooperation Agency—Sida) for the Research and Communication (ReCom) programme. UNU-WIDER also acknowledges core financial support to UNU-WIDER’s work programme from the governments of Finland (Ministry for Foreign Affairs), the United Kingdom (Department for International Development), and the governments of Denmark and Sweden.
Format:
online

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