The role of international cooperation in improving aid effectiveness : the case of the high-level forums of the Organisation for Economic Cooperation and Development (OECD)

Abstract

Historically, development aid dates back to the aftermath of World War II and its principles and practices are still much in action today. Although the idea of development aid is seen to be crucial and beneficial, in reality, there have been mixed outcomes. There is an equal measure of voices arguing for and against aid being effective in contributing to the economic growth of recipient countries. Generally, there have been efforts at the global level to consolidate development aid to bring about the needed impact. The Organisation for Economic Cooperation and Development (OECD) assumed the role of rallying action around aid effectiveness through its Working Party on Aid Effectiveness (WP-EFF, 2003) forum. This study analyses the contributions of the OECD interventions in making development aid effective. The study uses secondary data predominantly on the OECD archives and current research on the aid effectiveness agenda. Using content and grounded theory analysis, the study finds that the OECD interventions have been limited in guiding development aid towards adding economic prosperity to recipient countries. In particular, these OECD strategies have not managed to reduce donor transaction costs and coordinate the highly fragmented aid delivery system. The study further finds that aid effectiveness to some extent is conditional to a favourable policy environment. This research concludes by suggesting a strict commitment to aid reform by partners, development beyond aid, and alternatives sources of development financing.