The Impact of Independent Review on Assessments of Aid Project Effectiveness

Development Policy Centre, Discussion Paper 108, March 2024

48 Pages Posted: 21 Mar 2024

See all articles by Terence Wood

Terence Wood

Australian National University (ANU) - Crawford School of Public Policy

Stephen Howes

Australian National University (ANU) - Development Policy Centre; Australian National University (ANU) - Crawford School of Public Policy

Date Written: March 19, 2024

Abstract

In this paper we test whether increasing the independence of the project appraisal process changes the reported effectiveness of aid projects. We do this using a dataset of Australian aid appraisals and a natural experiment, which occurred when a more independent process involving DFAT’s central evaluation unit and external contractors was implemented for the review of performance appraisals of completed projects. Using difference-in-differences and contrasting assessments of ongoing projects, which the appraisal process was not changed for, and completed projects, where the process was changed, we show that introducing a more independence led to a substantial fall in how successful projects were deemed to be. We also show that the change probably led to more accurate recording of COVID-19’s impact on Australian aid, as well as more accurate assessments of the quality of Australia's aid to Papua New Guinea, its largest aid partner. As we do this, we take care to demonstrate that our findings are robust to the types of methodological issues that can afflict difference-in-differences studies.

Keywords: Aid effectiveness, Australian aid

Suggested Citation

Wood, Terence and Howes, Stephen, The Impact of Independent Review on Assessments of Aid Project Effectiveness (March 19, 2024). Development Policy Centre, Discussion Paper 108, March 2024, Available at SSRN: https://ssrn.com/abstract=4764436 or http://dx.doi.org/10.2139/ssrn.4764436

Terence Wood (Contact Author)

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, Australian Capital Territory ACT 0200
Australia

Stephen Howes

Australian National University (ANU) - Development Policy Centre ( email )

7 Liversidge Street (Bld 70)
Lennox Crossing
Canberra, 0200
Australia

Australian National University (ANU) - Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
25
Abstract Views
132
PlumX Metrics