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  1. 1 Ekonomia - Uniwersytet Ekonomiczny we Wroclawiu

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  1. 1 2011

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  1. 1 Nowik M.

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AID ARCHITECTURE - THE PROBLEM OF AID PROLIFERATION AND FRAGMENTATION (Architektura pomocy rozwojowej - problem proliferacji i fragmentacji)

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Nowik M.
Ekonomia - Uniwersytet Ekonomiczny we Wroclawiu
|
2011
|
issue 1(13)
121-130
EN
Contemporary aid architecture is a highly compound set of rules and institutions that governs aid flows to developing countries. It is a result of evolution process that begun after World War II and keeps evolving in an uncoordinated way. Two major trends are to be distinguished in the course of the process i.e. aid proliferation and aid fragmentation. According to IDA definition this paper associates proliferation with the number of donor channels providing ODA to a given recipient country, and fragmentation with the number of donor-funded activities as well as their average value. The aim of this paper is to present the scope and evolution of aid proliferation and fragmentation phenomena, to indicate consequences on aid effectiveness and to discuss recent donor led activities to prevent and mitigate further development of the trends. The main conclusions of the paper are as follows: aid fragmentation and proliferation is a consequence of lack of coordination among donor activities and focuses on particular interest of the parties. There has been clearly visible intensification of both phenomena since the fall of the Berlin Wall. The research based on Hirschman-Herfindahl index as well as qualitative studies indicate profound negative consequences of the phenomena on aid effectiveness. They erode the capacity of public administration of a recipient country, diminish the value of aid and hinder economic growth. International community of donor and recipients of development assistance undertake activities to mitigate and prevent. The most important so far is the Paris Declaration on Aid Effectiveness. An operationalisation of the ideas of alignment and harmonisation is the main response to the problem. The declaration introduces specific, measurable targets to track progress in field of eradication aid proliferation and fragmentation.
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