Too Many Aid Projects: Study Suggests Donor Competition Reduces Development
The proliferation of aid projects--particularly the failure of donors to coordinate them--is often criticized as one of the ways the foreign aid system is running amok. When aid projects proliferate, donors often seek better oversight through smaller projects. While this may improve administration, it burdens recipient governments with reporting requirements and donor visits. David Roodman suggests that big projects are best for countries that get more aid, have better governance, or have less revenue. He also shows how donors who care most about their own success tend to divide their aid portfolios into more, smaller projects to draw the recipient's resources away from other donors. This reduces development.
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