Donor Transparency and Aid Allocation
Discussion Paper 12/2011, German Development Institute, Bonn
38 Pages Posted: 19 Jul 2010 Last revised: 23 May 2013
Date Written: 2011
In recent years, the transparency of foreign aid has received substantial attention among aid practitioners. This analysis shows the impact of political transparency in donor countries on those countries’ formal promotion of aid transparency and on their concrete aid allocation patterns. Political transparency as measured by standard corruption indices not only impacts on the engagement of bilateral donors in the International Aid Transparency Initiative. Differences in political transparency in donor countries also explain a large part of their varying aid selectivity patterns. Donors with higher levels of political transparency allocate aid more according to recipients’ neediness and institutional performance.
This paper formerly appeared under the title: Do Less Transparent Donors Allocate Aid Differently?
Keywords: Foreign Aid, Aid Transparency, Political Transparency, Political Accountability, Donor Policy
JEL Classification: F35, H50
Suggested Citation: Suggested Citation