Can Donor Coordination Solve the Aid Proliferation Problem?

12 Pages Posted: 20 Apr 2016

See all articles by Aminur Rahman

Aminur Rahman

World Bank

Yasuyuki Sawada

University of Tokyo - Faculty of Economics

Date Written: March 1, 2010

Abstract

The paper augments Holmstrom?s (1982) team production model in the context of aid effectiveness. The analysis shows how donor proliferation leads to inefficient supply of aid in the recipient country because of the free-riding problem faced by the donors. The empirical findings support the theoretical prediction with regard to donor proliferation. However, this raises the question whether the current efforts in the international aid community with regard to donor coordination can in fact solve the aid proliferation problem.

Suggested Citation

Rahman, Aminur and Sawada, Yasuyuki, Can Donor Coordination Solve the Aid Proliferation Problem? (March 1, 2010). World Bank Policy Research Working Paper No. 5251. Available at SSRN: https://ssrn.com/abstract=1579214

Aminur Rahman

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Yasuyuki Sawada

University of Tokyo - Faculty of Economics ( email )

7-3-1 Hongo, Bunkyo-ku
Tokyo 113-0033
Japan

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