Real innovation or second-best solution? First experiences from results-based aid for fiscal decentralisation in Ghana and Tanzania

Heiner Janus

No 3/2014, IDOS Discussion Papers from German Institute of Development and Sustainability (IDOS)

Abstract: This paper systematically records first experiences with results-based aid for fiscal decentralisationin Ghana and Tanzania. Results-based aid is an innovative aid modality that links funding to the achievement of pre-agreed results, based on a contract between the donor and the recipient country. Observations from Ghana and Tanzania show that the modality holds great potential in incentivising better performance in fiscal decentralisation compared to traditional aid approaches. Yet, a number of challenges emerge during implementation, including trade-offs between country ownership and results-orientation or increased transaction costs, for instance. Therefore, results-based aid is a promising aid modality for fiscal decentralisation, but it should be implemented in alignment with partner-country systems and harmonised with other aid modalities. Results-based aid can be one important element of the aid modality-mix in fiscal decentralisation.

Keywords: Entwicklungsfinanzierung und öffentliche Finanzen; Wirksamkeit und Evaluierung (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/199416/1/die-dp-2014-03.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:diedps:32014

Access Statistics for this paper

More papers in IDOS Discussion Papers from German Institute of Development and Sustainability (IDOS) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().