Chauvet, L., Collier, P., and Duponchel, M. (2010) 'What Explains the Success of Aid Projects in Post-Conflict Situations?'

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Precept 9 recommends that government use resource wealth for increasing efficiency and equity in public spending. In doing so the government is required to raise the capacity for spending. As resource rich countries have a large concentration of revenues accumulating to government, the government must be able to spend that money effectively.

 

The paper analyses the effectiveness of aid projects in post conflict situations using data on World Bank projects. The authors find that whilst aid ought to be particularly effective in the immediate post-conflict setting, this tends to be offset by the limit to absorptive capacity in such a context. It is found that the supervision of projects is a crucial determinant in the success of projects. This is particularly relevant evidence for the implementation of public investment projects, suggesting that international development agencies could act as partners in projects due to their experience in supervision.

Accesss the report here.

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