Research Topics

Publications

The U4 Blog

Learning & events

About Us

Budget support, poverty and corruption: a review of the evidence

Resource from others

Budget support, poverty and corruption: a review of the evidence

Contrary to the many expectations on the high fiduciary risks of budget support, there is no evidence that it increased corruption.
11 February 2020

Budget support led to substantial alignment of aid to local systems. In most countries disbursement conditions were harmonised to a great extent. The predictability of budget support was good, and better than for project aid. Budget support decreased transaction costs.

Budget support strengthened not only institutions for the oversight of budget execution, but also other institutions aiming to monitor corruption. This helped detect more corruption cases. However, in most countries concerns remain about the extent of prosecution and punishment of the culprits. Contrary to the many expectations on the high fiduciary risks of budget support, there is no evidence that it increased corruption.

However, each of these positive findings held true mostly for the earlier parts of the evaluation periods (only). The benefits largely evaporated by the end of the period as a result of more intensive governance discussions, varying donor responses to perceived breaks with the underlying principles, and lower budget support volumes.

Budget support, poverty and corruption: a review of the evidence
Geske Dijkstra, EBA/Swedish expert group for Aid Studies, 2018.

    Disclaimer


    All views in this text are the author(s)’, and may differ from the U4 partner agencies’ policies.

    This work is licenced under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International licence (CC BY-NC-ND 4.0)