The role of incentives and evaluations in enhancing development effectiveness

Eduardo Wiesner ()
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Eduardo Wiesner: Universidad de los Andes

Colombian Economic Journal, 2004, vol. 2, issue 1, 13-31

Abstract: A key issue today is how to improve the effectiveness of policies whose objective is poverty reduction and decentralisation. This paper argues that a major problem is the (intentionally and unintentionally) flawed use of incentives in policy design and execution. The lack of appropriate incentives (associated, for example, with unconditional grants) can lead to what are characterised as “bad” incentives, which favour rent-seeking rather than efficient public and aid programme expenditures. It concludes that independent demand-driven evaluation can play a major role in improving incentives

Keywords: macroeconomic policy; government programmes; economic development (search for similar items in EconPapers)
JEL-codes: E69 I38 (search for similar items in EconPapers)
Date: 2004
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