Entitlement, Rules, Coordination, Club, Market and Hierarchy - General Budget Support Practice and Theory: Implications

The paper discusses implications for practice and theory of the recently completed Joint Evaluation of General Budget Support 2004-06 based on case studies in Burkina Faso, Malawi, Mozambique, Nicaragua, Rwanda, Uganda and Vietnam. The paper first looks at the extent to which general budget support, on the evidence of the evaluation, stands up to common criticisms of the effects of aid on government in low income, aid dependent countries. Allowing for much caution owing to the short period of partnership general budget support (PGBS) programmes in some countries, the finding is that there are small but positive impacts (notably reducing unnecessary transaction costs and increasing discretion of government-thereby raising allocative and operational efficiency). Net benefits are generally greater where PGBS programmes are longer established. ...