In recent years, China has become a major power on the African continent, not only with respect to trade and investment, but also as a donor of development aid. Although there is no accurate measure of the exact size of China's aid program, since China rather underestimates the volume in...

We model the aid allocation decision where the donor government has announced that good governance is the criterion for receiving aid. Potential recipients must compete for the aid funds. The structure of the competition is important to the donor in terms of achieving good governance, and to the...

There is a widespread view that political criteria have received less emphasis in aid allocation since the end of the cold war, with a greater share of aid subsequently being based on developmental criteria. An observed increase in aid effectiveness is attributed to this shift. A reasonably...

There has been significant amount of aid inflows to developing countries including Ghana, but these have been very volatile. Aid flows have been associated with low domestic resource mobilization and have reduced Ghana to a country heavily dependent on aid. The amount of official development...

This study - commissioned by the German Ministry for Economic Cooperation and Development (BMZ) – evaluates the direct effects (i.e. the direct and induced outputs) of budget support in Zambia. It forms part of a joint international evaluation of budget support in Zambia. The report focuses on...

We estimate the impact of a village-level assistance program run by the Evangelical Lutheran Church of Tanzania on literacy and schooling. The programs are partly funded by official development assistance from the US and EU. Villages in northwestern Tanzania are economically isolated but are...

The Paris declaration of 2005 on aid effectiveness is now part of the international consensus. It holds that increased use of budget support combined with decentralised aid administration will lead to transaction costs reductions (through better donor harmonisation of aid) and to enhanced local...