Can process conditionality enhance aid effectiveness?

Carsten Hefeker and Katharina Michaelowa ()

Public Choice, 2005, vol. 122, issue 1, 159-175

Abstract: Can process conditionality enhance poverty reduction in developing countries? We address this question in a political-economic framework with political distortions on the recipient and the donor side. Process conditionality is a useful tool only if the international financial institutions hold all necessary information to assess the political situation in recipient countries and to select the true representatives of the poor into a participatory process. If they do not hold this information or if bureaucratic interests reduce their incentive to acquire this information, process conditionality loses its effectiveness. Copyright Springer Science + Business Media, Inc. 2005

Date: 2005
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DOI: 10.1007/s11127-005-5791-3

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