Saturday, 4 December 1999

From "Aid, Conditionality, and Debt in Africa"

By Ravi Kanbur.

Aid institutions are judged purely by their financial flow. Because the institution is judged by how much money it has transferred, there is tremendous pressure on the staff to sign the checks [...] Usually the money is front-loaded while the actions are backloaded. Most of the time the actions are not fulfilled. The solution is to turn this around. Ask for up-front actions and then backload the disbursements. Paul Collier has argued the fact that money is tied to this in the future questions the policy. Policy reversal has been a major trend in the African environment. Instead of having five conditions jointly for the entire amount, why not break it up into floating trenches into 20-20-20-20-20 each. So that each condition means less in terms of financial things.

No comments: