Donor harmonisation, Ownership and Aid Effectiveness

A critical analysis of the Multi Donor Budget Support in Ghana

Master's Thesis , 2010 , 45 Pages , Grade: 1,0

Politics - Topic: Development Politics

This paper deals with the aid instrument budget support and discusses its strengths and weaknesses in terms of the expected effects of the instrument in areas such as donor harmonisation, ownership, aid effectiveness and accountability. By presenting the international context in which the rise of program-based approaches, such as budget support, took place and by summarizing the actual debate about the instrument and its effectiveness, the paper elaborates a set of assumptions and hypothesises which are affecting the overall performance of the instrument and have to be addressed based on the specific country context. In consequence, it examines and tests these assumptions by critically analyzing the Multi Donor Budget Support in Ghana based on a field study conducted in Accra in July 2010. The central argument of the paper is that general budget support can be one of the most effective aid instruments available at the time, as long as problems inherent to the instrument are addressed and tackled to prevent negative side effects. It comes to the conclusion that the MDBS in Ghana, although there is still room for improvement and entry points for critique, is a functioning example on how to acknowledge and implement the principles of the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action. Especially the quality of the policy dialogue and initiatives taken to avoid negative side effects in areas such as domestic as well as mutual accountability and ownership could become valuable examples for others to follow.

Inhaltsverzeichnis (Table of Contents)

• Preface
• Literature Review
  • The international context
  • The rise of budget support
  • The actual debate
• The Multi Donor Budget Support in Ghana – An analysis
  • Operational structure
  • Achievements and challenges
    • Budget support, project aid and public financial management
    • Donor harmonisation, bilateral bypassing and the flexibility of the instrument
    • Conditionality, ownership and domestic accountability
    • Other challenges and risks
• Conclusion
• Annex:
  • Methodology
  • Acknowledgements
  • List of references
  • List of tables and figures
  • Abbreviations

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper explores the effectiveness of budget support as an aid instrument, analyzing its strengths and weaknesses in relation to donor harmonization, ownership, aid effectiveness, and accountability. It examines the international context surrounding the rise of budget support and the ongoing debate regarding its effectiveness. The paper then delves into the specific case of the Multi Donor Budget Support (MDBS) in Ghana, drawing on fieldwork conducted in Accra to test key assumptions and hypotheses about the instrument's performance.

• Analyzing the effectiveness of budget support as an aid instrument.
• Examining the impact of budget support on donor harmonization, ownership, and accountability.
• Investigating the relationship between budget support and public financial management.
• Assessing the challenges and risks associated with budget support.
• Exploring the potential for budget support to contribute to development effectiveness.

Zusammenfassung der Kapitel (Chapter Summaries)

The paper begins with a review of the international context, outlining the development principles that underpin the growing use of budget support. This section examines the Paris Declaration on Aid Effectiveness and the Accra Agenda for Action, which emphasize the need for more effective aid and increased donor harmonization. The paper then delves into the operational structure and logic of budget support, exploring how the instrument is designed to achieve its objectives. The chapter concludes with a discussion of the ongoing debate about budget support, highlighting key areas of academic interest and the main strengths and weaknesses of the instrument.

The paper then presents a detailed analysis of the MDBS in Ghana, examining its operational structure, achievements, and challenges. This section explores the relationship between budget support, project aid, and public financial management, as well as the impact of the instrument on donor harmonization, ownership, and domestic accountability. It also investigates other challenges and risks associated with the MDBS, providing a comprehensive overview of the instrument's strengths and weaknesses in the Ghanaian context.

Schlüsselwörter (Keywords)

The paper explores key concepts including budget support, donor harmonization, ownership, aid effectiveness, accountability, public financial management, the Paris Declaration on Aid Effectiveness, the Accra Agenda for Action, and the Multi Donor Budget Support (MDBS) in Ghana. It examines the theoretical perspectives and empirical evidence related to these concepts, providing a critical analysis of the effectiveness of budget support as an aid instrument.

• College: University of Birmingham (International Development Department)
• Grade: 1,0
• Author: Florian Meyer (Author)
• Publication Year: 2010
• Pages: 45
• Catalog Number: V163566
• ISBN (eBook): 9783640785322
• ISBN (Book): 9783640785384
• Language: English
• Tags: Master;, dissertation, entwicklung, Development, Politik, Politics, International, Political, Economy, Budget Support;, Multi, Donor, MDBS, Ghana, Ökonomie, Aid, effectiveness, harmonisation, ownership, budgethilfe