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Output-Based Aid : Lessons Learned and Best Practices

Mumssen, Yogita; Johannes, Lars; Kumar, Geeta
Fonte: World Bank Publicador: World Bank
Português
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36.45%
Governments in developing countries and members of the development aid community are acutely aware of the need to find more effective ways to improve basic living conditions for the poor. Traditional approaches to delivering public support have not always led to the results intended. Results-based financing instruments are now recognized as one important piece of the aid-delivery puzzle. Results-based financing (RBF) is an umbrella term that includes output-based aid, provider payment incentives, performance-based interfiscal transfers, and conditional cash transfers. What these mechanisms have in common is that a principal entity provides a financial or in-kind reward, conditional on the recipient of that reward undertaking a set of predetermined actions or achieving a predetermined performance goal. The ultimate aim is to increase the effectiveness of scarce public resources for the provision of basic services. This book is structured as follows: part one includes chapter one, which defines output-based aid (OBA) and puts it in the context of traditional aid-delivery mechanisms and RBF instruments. Chapter two provides an overview of where OBA approaches are being implemented as well as a description of the various applications of OBA: one-off...

Financing Higher Education in Africa

World Bank
Fonte: World Bank Publicador: World Bank
Português
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36.39%
This report demonstrated that the key for success in a globalized world lies increasingly in how effectively a country can assimilate the available knowledge and build comparative advantages in areas with good growth prospects and how it can use technology to address the most pressing environmental challenges. Higher-level institutions in Sub-Saharan Africa that is equipped to impart quality education and conduct relevant applied research can play a critical role in producing workers with the skills to assimilate technology and make effective decisions that help industry to diversify into a broader range of products. Good-quality and relevant higher education is also a key to stimulating innovations in new varieties of crops, new materials, or sources of energy that would facilitate progress toward reducing poverty, achieving food security, and improving health. This report is a follow-up to the 2008 study. It examines current practices in financing higher education in Sub-Saharan Africa, taking into account the significant differences that exist among countries. Drawing on experience from around the world...

Scaling up Aid or Scaling down : The Global Economic Crisis and Rwanda’s MDGs

Lofgren, Hans; Nielsen, Hannah; Ezemenari, Kene
Fonte: Banco Mundial Publicador: Banco Mundial
Português
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36.44%
Rwanda is not on track to achieve most of the Millennium Development Goals at a time when hopes for scaled-up aid are mixed with concerns that, in the context of the global economic crisis, aid instead will be scaled down. This paper analyzes the effects of alternative scenarios for grant aid, government spending allocations (between infrastructure, agriculture, and human development), and government efficiency. The authors use an economy-wide model for development strategy analysis, Maquette for Millennium Development Goal Simulations. Under a plausible scenario for increased aid, annual growth in gross domestic product increases by as much as 0.6 percentage points relative to a baseline with a growth rate of 6 percent; by 2020, the headcount poverty rate declines to 32 percent, 3 percentage points lower than for the baseline. A plausible scenario for reduced aid leads to a symmetric growth reduction but a more pronounced increase in poverty, at 40 percent in 2020. When aid increases, the most positive growth and poverty reduction impacts occur if spending increases are allocated to infrastructure and agriculture; progress in human health and education is significant but weaker than if additional spending is focused on these areas. Given synergies and diminishing marginal returns from expansion in a limited area...

A Decade of Aid to the Health Sector in Somalia 2000-2009

Capobianco, Emanuele; Naidu, Veni
Fonte: World Bank Publicador: World Bank
Português
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46.55%
This study reviews: (1) how levels of donor financing of the health sector in Somalia varied over the decade 2000-09, (2) which health interventions were prioritized by donors, and (3) how evenly health sector aid was distributed to the different zones of Somalia. The overall aim of the study was to create evidence for donors, implementers, and health specialists involved in allocation of financial resources to the Somalia health sector. The results of the study are based on quantitative data collected from 38 Development Assistance Committee (DAC) donors and implementing agencies active in Somalia. Quantitative data were collected between March and May 2007 and in March 2010, with response rates of 96 and 95 percent, respectively. The report is organized in five chapters. Chapter one provides the background to the study, along with its aims and objectives, and contextualizes the study area, Somalia. Chapter two provides the conceptual framework for the research by looking at aid financing trends in developing countries...

What Is Effective Aid? How Would Donors Allocate It?

Kenny, Charles
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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46.33%
There are significant weaknesses in some of the traditional justifications for assuming that aid will foster development. This paper looks at what the cross-country aid effectiveness literature and World Bank Operations Evaluation Department reviews have suggested about effective aid, first in terms of promoting income growth, and then for promoting other goals. This review forms the basis for a discussion of recommendations to improve aid effectiveness and a discussion of effective aid allocation. Given the multiple potential objectives for aid, there is no one right answer. However, it appears that there are a number of reforms to aid practices and distribution that might help to deliver a more significant return to aid resources. We should provide aid where institutions are already strong, where they can be strengthened with the help of donor resources, or where they can be bypassed with limited damage to existing institutional capacity. The importance of institutions to aid outcomes, as well as the fungibility of aid flows, suggests that programmatic aid should be expanded in countries with strong institutions, while project aid should be supported based on its ability to transfer knowledge and test new practices and support global public good provision rather than (merely) as a tool of financial resource transfer. The importance of institutions also suggests that we should be cautious in our expectations regarding the results of increased aid flows.

Community Involvement in Health Care Financing : A Survey of the Literature on the Impact, Strengths, and Weaknesses

Jakab, Melitta; Krishnan, Chitra
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Português
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36.4%
The paper reviews 45 published and unpublished reports on community financing completed between 1990 and 2001. The main objective of the study was to explore performance measures reported in the literature regarding community financing. The study concluded that the reviewed literature is rich in describing scheme design and implementation. At the same time, evidence on the performance of community financing schemes is limited. The study focused on reporting measures on three indicators in particular: Resource mobilization capacity. Community financing mechanisms mobilize significant resources for health care. However, there is a large variation in the resource mobilization capacity of various schemes. This review did not find systematic estimates about how much community financing contributes to health revenues at the local and/or national level. Social inclusion. Community financing is effective in reaching a large number of low-income populations who would otherwise have no financial protection against the cost of illness. There is large variation in the size of various schemes. At the same time...

International Public Goods : Incentives, Measurement, and Financing

Ferroni, Marco; Mody, Ashoka
Fonte: Washington, DC: World Bank and Kluwer Publicador: Washington, DC: World Bank and Kluwer
Português
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36.43%
Increasingly, the consequences of globalization call for the involvement, not only of national governments, but of the international development community as a whole. Such involvement needs to occur within a comprehensive framework that encompasses stakeholders from government, non-governmental organizations, and businesses acting together in partnership. This requires the leveraging of general aid and country-focused development resources along with encouraging private financing participation. The book explains different ways that this type of framework might be structured, and focuses on different financing strategies that can be developed. It acknowledges the value of country specific efforts while recommending a multi-national approach to addressing problems resulting from globalization. This book evaluates the concepts fundamental to the term "public goods" and details alternative governance structures including the role of incentives.

Financing for Development Post-2015

World Bank Group
Fonte: Washington, DC Publicador: Washington, DC
Português
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36.67%
This paper is a contribution to United Nation (UN)-led efforts to articulate a post-2015 development framework, building on the Millennium Declaration and Millennium Development Goals (MDGs). It focuses on the challenge of financing development goals and complements the extensive work conducted by the United Nations1 and other institutions, including the World Bank Group. The paper is structured as follows. Section one outlines elements of what it will take to achieve development outcomes, the importance of a global development cooperation framework, the role of targeted, evidence-based policies and sound institutions; and the mobilization of resources for global public goods. Section two focuses on how best to support developing countries in mobilizing domestic resources for development, by boosting taxation capacity, harnessing natural resource revenue, improving expenditure efficiency, and curbing illicit financial flows. Section three examines issues of aid effectiveness and considers ways for development actors to provide better and smarter aid. Section four discusses trends in private financial flows to developing countries and the growing mismatch between available financing and investment needs. It then turns to strategies for mobilizing financing for long-term infrastructure. Finally...

Impact Evaluation Helps Deliver Development Projects

Legovini, Arianna; Di Maro, Vincenzo; Piza, Caio
Fonte: World Bank Group, Washington, DC Publicador: World Bank Group, Washington, DC
Português
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36.49%
Does research add value to aid? Specifically, does impact evaluation research help or hinder the delivery of development projects? This paper analyzes the question by constructing a new data set of 100 impact evaluations and 1,135 projects approved by the World Bank between 2005 and 2011. The analysis finds that the delivery of projects with impact evaluation is significantly timelier: common delays are avoided and the gap between planned and actual disbursements is reduced by half. Evidence-based mid-course corrections, a clearer implementation road map, strengthened capacity on the ground, and observer effects are possible channels to explain the results. Hopefully, this analysis will stimulate discussion over the optimal balance between project financing and the impact evaluation research needed to deliver development outcomes.

Potentials and Constraints of Using Warehouse Receipts Financing

World Bank Group
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Trabalho em Andamento
Português
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36.41%
The paper starts with an overview of Cambodia’s rice sector, with a particular attention to aspects which affect its need for external working capital finance, and characteristics and constraints that could hinder access to such finance (e.g., warehousing capacity, processing constraints, logistics, and market risks). Chapter two describes the general conditions for crop-based financing in Cambodia’s rice sector. Chapter three discusses policy options for enhancing the use of paddy and rice as collateral for financing. The chapter sets out the two main modalities: collateral management, and public warehousing. Both collateral management and public warehousing work best when certain support structures are in place, in particular an indemnity system, a system for the electronic trading of warehouse receipts, and a facility for refinancing warehouse receipt loans (which could be managed by the Central Bank or outsourced to another competent entity such as an investment fund). These are discussed in separate sections. The various sections describe the situation as currently prevails in Cambodia...

Public financing of cooperative R&D projects in Spain: the Concerted Projects under the National R&D Plan

Acosta Ballesteros, J. A.; Modrego, Aurelia
Fonte: Elsevier Publicador: Elsevier
Tipo: info:eu-repo/semantics/acceptedVersion; info:eu-repo/semantics/article Formato: application/pdf; text/plain
Publicado em //2001 Português
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36.43%
This work will analyse the factors which influence decision-making within the Spanish public sector on the financing of precompetitive research projects developed by firms in collaboration with universities and public research organisms. With this objective in mind, an econometric model is proposed that explains simultaneously the concession of aid on behalf of the public sector and the amount of such aid. The estimates carried out indicate, among other results, that the destination of the budgeted funds explains a large part of the public financing received. However, all the evidence would seem to indicate that the funding has not been awarded either in order to significantly favour those firms which most need it, nor to give incentive to high levels of cooperation.; We are grateful to Victor Cano, Praveen Kujal, Stan Metcalfe, Manuel Navarro, Maria del Pilar Osorno, Olga Rodriguez and three anonymous referees for useful comments and suggestions. We also wish to point out that the information contained in this paper had been obtained thanks to the collaboration of the Centre for Industrial Technological Development ŽCDTI. and the Interministerial Commission for Science and Technology ŽCICYT.. This work has received financing form the National R&D Plan ŽProjects SEC93-833-CO2 and SEC97-1331.

Financing and Aid Management Arrangements in Post-Conflict Settings

Schiavo-Campo, S.
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Brief; Publications & Research
Português
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36.61%
This note, summarizing the analysis and recommendations of an upcoming CPR Working Paper of the same title, looks at issues related to financing modalities and aid management arrangements in post-conflict situations. It makes a number of recommendations based on a review of several recent case studies, of which four are assessed in detail: West Bank and Gaza, Bosnia and Herzegovina, East Timor, and Afghanistan. It focuses on the lessons of experience on multi-donor trust funds and on the recipient government's aid management architecture in post-conflict settings. This paper is concerned with the specific issues of financing modalities and aid management arrangements in post-conflict situations, and advances a number of recommendations on the basis of a review of several recent cases, among which four are assessed in detail: West Bank and Gaza, Bosnia and Herzegovina, East Timor (Timor-Leste) and Afghanistan. While generally applicable recommendations do emerge from the review, the most important recommendation is to tailor the design and sequencing of financing and aid coordination to the circumstances of the specific case.

Arab Donors' Early Response to the Arab Spring

Rouis, Mustapha
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Brief; Publications & Research
Português
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46.46%
The World Bank's 2010 study, Arab Development Assistance: four decades of cooperation, and the subsequent note, Arab donors respond favorably to the global financial crisis (Rouis 2011), showed that the three Gulf countries - Kuwait, Saudi Arabia, and the United Arab Emirates (UAE) have provided generous aid financing over the years. This paper, which extends the analysis to 2010 for Arab overseas development assistance (ODA) and to 2011 for the assistance provided by the Arab regional financial institutions, confirms that this generosity continues in the wake of the global economic crisis and the events of the Arab Spring movement. The paper shows that Arab assistance has been responsive in addressing critical development and humanitarian needs in developing countries. There are preliminary indications that Arab donors and financial institutions have made some adjustments in response to the needs of the Arab countries going through the unprecedented political transition sparked by the Arab Spring. Arab donor countries and financial institutions have responded favorably and promptly during the global economic and financial crisis. Their increased assistance to countries affected by the Arab Spring has yet to materialize beyond the stage of pledges and commitments.

Trust Fund Support for Development : An Evaluation of the World Bank's Trust Fund Portfolio

Independent Evaluation Group
Fonte: Washington, DC: World Bank Group Publicador: Washington, DC: World Bank Group
Tipo: Publications & Research; Publications & Research :: Publication
Português
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36.58%
In the changing global environment of development cooperation, trust funds have emerged as a significant pillar of the global aid architecture, used to address limitations in bilateral aid and fill perceived gaps in the operations of existing multilateral institutions. They currently account for about 11 percent of official development assistance (ODA), and they finance a substantial part of the World Bank's business. The activities they fund are highly varied, ranging from huge global programs with their own governance structures to conventional development projects, debt and disaster relief operations, and technical assistance. This IEG evaluation, undertaken at the request of World Bank executive directors, assesses the value of the trust fund vehicle as a way of delivering aid and the effectiveness and efficiency of the deployment of trust fund resources. In addition, the evaluation assesses the Bank's management and accountability for the use of trust fund resources and the impact of trust funds on the Bank's development role. The evaluation finds that donors...

Post-Conflict Aid, Real Exchange Rate Adjustment, and Catch-up Growth

Elbadawi, Ibrahim A.; Kaltani, Linda; Schmidt-Hebbel, Klaus
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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56.5%
Post-conflict countries receive substantial aid flows after the start of peace. While post-conflict countries' capacity to absorb aid (that is, the quality of their policies and institutions) is built up only gradually after the onset of peace, the evidence suggests that aid tends to peak immediately after peace is attained and decline thereafter. Aid composition broadly reflects post-conflict priorities, with large parts of aid financing social expenditure and infrastructure investment. Aid has significant short-term effects on the real exchange rate (RER), as inferred from the behavior of RER in the world. While moderate RER overvaluation is observed in post-conflicts, it cannot be traced down to the aid flows. The empirical evidence on world growth reveals new findings about the pattern of catch-up growth during post-conflicts and the role of key growth determinants on post-conflict growth. Aid is an important determinant of growth, both generally and more strongly during post-conflict periods. Because RER misalignment reduces growth...

A Review of Health Sector Aid Financing to Somalia

Capobianco, Emanuele; Naidu, Veni
Fonte: Washington, DC : World Bank Publicador: Washington, DC : World Bank
Tipo: Publications & Research :: Publication; Publications & Research :: Publication
Português
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56.57%
Somalia is considered the most fragile of the fragile states: more than fifteen years of war and cyclical natural catastrophes have placed an immense burden on millions of Somalis. Displacement, famine, droughts, disease outbreaks, and illiteracy have become the norm. The international community has tried to respond to Somalia's tragedy and over the years has allocated substantial amounts of funds to a variety of sectors to help address this chronic emergency. This paper focuses on aid financing to the health sector over the period 2000 to 2006. It thoroughly reviews the flows of funds in the complex aid architecture of the Somalia health sector. The study on the 2000-06 aid flows to the health sector in Somalia is a first attempt to fill a large gap of knowledge in this area. The primary objectives of the study were to assess how levels of donor financing varied over the years; which health interventions were prioritized by donors; and how evenly health sector aid was distributed to the different zones of Somalia. The overall aim of the study was to create evidence for donors...

Achieving the MDGs in Yemen : An Assessment

Al-Batuly, Abdulmajeed; Al-Hawri, Mohamed; Cicowiez, Martin; Lofgren, Hans; Pournik, Mohammad
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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36.47%
Once the current political crisis in Yemen has been resolved, it will be ever more urgent to speed up progress, including Millennium Development Goal (MDG) achievements. Drawing on simulations with the Maquette for MDG Simulations (MAMS), a model for strategy analysis, and a linked microsimulation model, this paper addresses Yemen's MDG challenges. A first simulation set considers scaled-up government actions with the aim of fully achieving the 2015 international MDG targets with required additional financing from foreign or domestic sources. The main finding is sobering but not surprising: given the required expansion of MDG -- related services, on-time achievement of key MDG targets does not appear to have been a realistic objective even if the government, hypothetically, would have expanded services with grant aid financing starting from 2005; macroeconomic stability, government efficiency, and the production of tradables would all have suffered due to the size of spending and aid increases as well as the resulting real exchange rate appreciation. The results suggest that countries...

Beyond Aid : New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa

Ratha, Dilip; Mohapatra, Sanket; Plaza, Sonia
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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36.58%
Given Sub-Saharan Africa's enormous resource needs for growth, poverty reduction, and other Millennium Development Goals, the development community has little choice but to continue to explore new sources of financing, innovative private-to-private sector solutions, and public-private partnerships to mobilize additional international financing. The paper suggests several new instruments for improving access to capital. An analysis of country creditworthiness suggests that many countries in the region may be more creditworthy than previously believed. Establishing sovereign rating benchmarks and credit enhancement through guarantee instruments provided by multilateral aid agencies would facilitate market access. Creative financial structuring, such as the International Financing Facility for Immunization, would help front-load aid commitments, although these may not result in additional financing in the long run. Preliminary estimates suggest that Sub-Saharan African countries can potentially raise USD 1-3 billion by reducing the cost of international migrant remittances...

Foreign Aid, Conditionality and Ghost of the Financing Gap : A Forgotten Aspect of the Aid Debate

Ranaweera, Thilak
Fonte: World Bank, Washington, DC Publicador: World Bank, Washington, DC
Tipo: Publications & Research :: Policy Research Working Paper; Publications & Research
Português
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36.51%
Assessing Aid: What Works, What Doesn't, and Why (The World Bank, 1998) generated a new wave of controversy about foreign aid and policy conditionality that had seen several decades of intense debate. Much of the recent debate has focused on the aid-growth relationship and the role of "good" policies. While a great deal has been said about qualitative aspects of aid effectiveness (that is, fungibility, among other things), little attention has been paid so far to some important quantitative aspects. The author draws attention to this neglected aspect of the aid debate to show that the level of aid requirements of a country is an equally important and integral part of aid and aid effectiveness. The author compares the World Bank/IMF approaches to estimation of external assistance requirements of a country in quantitative terms with an alternative model, the "balance of payments constrained growth model" (based on the Harrod trade multiplier). He finds that the latter model is not a real alternative as it is an incomplete model. More important...

Acting Autonomously or Mimicking the State and Peers? A Panel Tobit Analysis of Financial Dependence and Aid Allocation by Swiss NGOs

Dreher, Axel; Nunnenkamp, Peter; ?hler, Hannes; Weisser, Johannes
Fonte: Faculty of Economics Publicador: Faculty of Economics
Tipo: Working Paper; not applicable
Português
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36.49%
NGO aid is still widely believed to be superior to official aid (ODA). However, the incentives of NGOs to excel and target aid to the poor and deserving are increasingly disputed. We contribute to the emerging literature on the allocation of NGO aid by performing panel Tobit estimations for Swiss NGOs. The analysis offers new insights in two major regards: First, we cover the allocation of both self-financed and officially co-financed aid for a large panel of NGOs and recipient countries. Second, by classifying each NGO according to its financing structure, we address the unresolved question of whether financial dependence on the government impairs the targeting of NGO aid. It turns out that NGOs mimic the state as well as NGO peers. Officially refinanced NGOs are more inclined to imitate the allocation of ODA. However, the degree of financial dependence does not affect the poverty orientation of NGO aid and the incentives of NGOs to engage in easier environments. The allocation of self-financed aid differs in several respects from the allocation of officially co-financed aid, including the role of financial dependence for imitating the state and herding among NGOs.