Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration?
The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. It also calls for donors to be more responsive to the quality of recipient country systems: the optimal level of...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/04/17620953/building-or-bypassing-recipient-country-systems-donors-defying-paris-declaration http://hdl.handle.net/10986/15564 |
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okr-10986-155642021-04-23T14:03:19Z Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration? Knack, Stephen ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ACCOUNTING SYSTEM AID AID-DEPENDENT COUNTRIES ALLOCATION ANNUAL BUDGET AUDITING AUDITS BASIC BUDGET EXECUTION BUDGET EXECUTION PROCEDURES BUDGET MODEL BUDGET SUPPORT BUDGETARY EXPENDITURES BUDGETARY INSTITUTIONS BUDGETARY PROCEDURES CENTRAL GOVERNMENT CHART OF ACCOUNTS CIVIL LIBERTIES COMPONENTS CORRUPTION COUNTRY PROCUREMENT CREDIBLE BUDGET DEBT DEBT RELIEF DEBT SUSTAINABILITY DECISION-MAKING DEVELOPMENT STRATEGIES DONOR FUNDS ECONOMETRIC ANALYSIS ECONOMIES OF SCALE EXPENDITURES FINANCIAL ACCOUNTABILITY FINANCIAL CRISES FINANCIAL MANAGEMENT SYSTEM FINANCIAL MANAGEMENT SYSTEMS FISCAL INFORMATION FISCAL REPORTING GENERAL BUDGET SUPPORT GROWTH RATE HIPC INCOME INDEXES MARGINAL EFFECTS MEDIA MULTILATERAL DONORS MULTILATERAL ORGANIZATIONS NATIONAL BUDGET NATIONAL DEVELOPMENT NATURAL RESOURCES NGO PER CAPITA INCOME PORTFOLIOS PRIVATE COMPANIES PROCUREMENT SYSTEMS PROGRAMS PUBLIC ACCOUNTS PUBLIC EMPLOYEES PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC FUNDS PUBLIC OFFICIALS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR MANAGEMENT PUBLIC SECTOR REFORM PUBLIC SERVICES PUBLIC SPENDING SAMPLE SIZE SECTOR BUDGET SELECTION BIAS STD SUPREME AUDIT INSTITUTION SUSTAINABILITY ANALYSIS TECHNICAL ASSISTANCE TECHNICAL SUPPORT TRANSPARENCY TREASURY SYSTEM UNCERTAINTY The 2005 Paris Declaration on Aid Effectiveness sets targets for increased use by donors of recipient country systems for managing aid. It also calls for donors to be more responsive to the quality of recipient country systems: the optimal level of their use, in terms of maximizing the development effectiveness of aid, is believed to vary with their quality. This study investigates the degree to which donors' use of country systems is in fact positively related to their quality, using indicators explicitly endorsed for this purpose by the Paris Declaration and covering the 2005-2010 period. The results of these tests strongly confirm a positive and significant relationship, and show it is robust to corrections for potential sample selection, omitted variables, or endogeneity bias. The result holds even when estimates are informed only by variation over time within each donor-recipient pair in use and quality of country systems. Moreover, donor-specific tests show that use of country systems varies positively with their quality for the vast majority of donors. These findings contradict several other studies that claim there is no relation and imply that donors in this respect are failing to live up to their commitments under the Paris Declaration. The author's interpretation of the available evidence on use of country systems is more favorable: donors' behavior over the measurement period is largely consistent with their commitments in this area. In this respect, at least, donors appear to have modified their aid practices in ways that build rather than undermine administrative capacity and accountability in recipient country governments. 2013-09-04T15:41:23Z 2013-09-04T15:41:23Z 2013-04 http://documents.worldbank.org/curated/en/2013/04/17620953/building-or-bypassing-recipient-country-systems-donors-defying-paris-declaration http://hdl.handle.net/10986/15564 English en_US Policy Research Working Paper;No. 6423 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ACCOUNTING SYSTEM AID AID-DEPENDENT COUNTRIES ALLOCATION ANNUAL BUDGET AUDITING AUDITS BASIC BUDGET EXECUTION BUDGET EXECUTION PROCEDURES BUDGET MODEL BUDGET SUPPORT BUDGETARY EXPENDITURES BUDGETARY INSTITUTIONS BUDGETARY PROCEDURES CENTRAL GOVERNMENT CHART OF ACCOUNTS CIVIL LIBERTIES COMPONENTS CORRUPTION COUNTRY PROCUREMENT CREDIBLE BUDGET DEBT DEBT RELIEF DEBT SUSTAINABILITY DECISION-MAKING DEVELOPMENT STRATEGIES DONOR FUNDS ECONOMETRIC ANALYSIS ECONOMIES OF SCALE EXPENDITURES FINANCIAL ACCOUNTABILITY FINANCIAL CRISES FINANCIAL MANAGEMENT SYSTEM FINANCIAL MANAGEMENT SYSTEMS FISCAL INFORMATION FISCAL REPORTING GENERAL BUDGET SUPPORT GROWTH RATE HIPC INCOME INDEXES MARGINAL EFFECTS MEDIA MULTILATERAL DONORS MULTILATERAL ORGANIZATIONS NATIONAL BUDGET NATIONAL DEVELOPMENT NATURAL RESOURCES NGO PER CAPITA INCOME PORTFOLIOS PRIVATE COMPANIES PROCUREMENT SYSTEMS PROGRAMS PUBLIC ACCOUNTS PUBLIC EMPLOYEES PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC FUNDS PUBLIC OFFICIALS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR MANAGEMENT PUBLIC SECTOR REFORM PUBLIC SERVICES PUBLIC SPENDING SAMPLE SIZE SECTOR BUDGET SELECTION BIAS STD SUPREME AUDIT INSTITUTION SUSTAINABILITY ANALYSIS TECHNICAL ASSISTANCE TECHNICAL SUPPORT TRANSPARENCY TREASURY SYSTEM UNCERTAINTY |
| spellingShingle |
ACCESS TO INFORMATION ACCOUNTABILITY ACCOUNTING ACCOUNTING SYSTEM AID AID-DEPENDENT COUNTRIES ALLOCATION ANNUAL BUDGET AUDITING AUDITS BASIC BUDGET EXECUTION BUDGET EXECUTION PROCEDURES BUDGET MODEL BUDGET SUPPORT BUDGETARY EXPENDITURES BUDGETARY INSTITUTIONS BUDGETARY PROCEDURES CENTRAL GOVERNMENT CHART OF ACCOUNTS CIVIL LIBERTIES COMPONENTS CORRUPTION COUNTRY PROCUREMENT CREDIBLE BUDGET DEBT DEBT RELIEF DEBT SUSTAINABILITY DECISION-MAKING DEVELOPMENT STRATEGIES DONOR FUNDS ECONOMETRIC ANALYSIS ECONOMIES OF SCALE EXPENDITURES FINANCIAL ACCOUNTABILITY FINANCIAL CRISES FINANCIAL MANAGEMENT SYSTEM FINANCIAL MANAGEMENT SYSTEMS FISCAL INFORMATION FISCAL REPORTING GENERAL BUDGET SUPPORT GROWTH RATE HIPC INCOME INDEXES MARGINAL EFFECTS MEDIA MULTILATERAL DONORS MULTILATERAL ORGANIZATIONS NATIONAL BUDGET NATIONAL DEVELOPMENT NATURAL RESOURCES NGO PER CAPITA INCOME PORTFOLIOS PRIVATE COMPANIES PROCUREMENT SYSTEMS PROGRAMS PUBLIC ACCOUNTS PUBLIC EMPLOYEES PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC FUNDS PUBLIC OFFICIALS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR MANAGEMENT PUBLIC SECTOR REFORM PUBLIC SERVICES PUBLIC SPENDING SAMPLE SIZE SECTOR BUDGET SELECTION BIAS STD SUPREME AUDIT INSTITUTION SUSTAINABILITY ANALYSIS TECHNICAL ASSISTANCE TECHNICAL SUPPORT TRANSPARENCY TREASURY SYSTEM UNCERTAINTY Knack, Stephen Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration? |
| relation |
Policy Research Working Paper;No. 6423 |
| description |
The 2005 Paris Declaration on Aid
Effectiveness sets targets for increased use by donors of
recipient country systems for managing aid. It also calls
for donors to be more responsive to the quality of recipient
country systems: the optimal level of their use, in terms of
maximizing the development effectiveness of aid, is believed
to vary with their quality. This study investigates the
degree to which donors' use of country systems is in
fact positively related to their quality, using indicators
explicitly endorsed for this purpose by the Paris
Declaration and covering the 2005-2010 period. The results
of these tests strongly confirm a positive and significant
relationship, and show it is robust to corrections for
potential sample selection, omitted variables, or
endogeneity bias. The result holds even when estimates are
informed only by variation over time within each
donor-recipient pair in use and quality of country systems.
Moreover, donor-specific tests show that use of country
systems varies positively with their quality for the vast
majority of donors. These findings contradict several other
studies that claim there is no relation and imply that
donors in this respect are failing to live up to their
commitments under the Paris Declaration. The author's
interpretation of the available evidence on use of country
systems is more favorable: donors' behavior over the
measurement period is largely consistent with their
commitments in this area. In this respect, at least, donors
appear to have modified their aid practices in ways that
build rather than undermine administrative capacity and
accountability in recipient country governments. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Knack, Stephen |
| author_facet |
Knack, Stephen |
| author_sort |
Knack, Stephen |
| title |
Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration? |
| title_short |
Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration? |
| title_full |
Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration? |
| title_fullStr |
Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration? |
| title_full_unstemmed |
Building or Bypassing Recipient Country Systems : Are Donors Defying the Paris Declaration? |
| title_sort |
building or bypassing recipient country systems : are donors defying the paris declaration? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/04/17620953/building-or-bypassing-recipient-country-systems-donors-defying-paris-declaration http://hdl.handle.net/10986/15564 |
| _version_ |
1764429414462914560 |