Do Aid Donors Specialize and Coordinate within Recipient Countries? The Case of Malawi
Jun 1, 2015
Peter Nunnenkamp, Albena Sotirova, Rainer Thiele
Nunnenkamp, Peter, Albena Sotirova and Rainer Thiele. 2015. Do Aid Donors Specialize and Coordinate within Recipient Countries? The Case of Malawi. AidData Working Paper #10. Williamsburg, VA: AidData at William & Mary.
Update: A revised version of this paper has been published in Development Policy Review.
Acknowledging that aid proliferation and a lack of coordination impair aid effectiveness, donors have repeatedly promised to specialize and better coordinate their aid activities, most notably in the Paris Declaration of 2005. We exploit geocoded aid data from Malawi to assess whether the country’s bilateral and multilateral donors have acted accordingly at the district and sector level. We do not find compelling evidence for increased aid specialization after the Paris Declaration, and the regional division of labor among donors may even have deteriorated. Our within-country evidence thus broadly corroborates what previous studies found at the national level of recipient countries.