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Evaluation bias and incentive structures in bi- and multilateral aid agencies


Michaelowa, Katharina; Borrmann, A (2006). Evaluation bias and incentive structures in bi- and multilateral aid agencies. Review of Development Economics, 10(2):313-329.

Abstract

Evaluation is generally considered as an important tool to ensure the effective use of development aid, but it is itself subject to distortions. To derive institutional conditions conducive to effective evaluation, we develop a multi-level principal-agent model focusing on the interests of the different actors involved in the evaluation process. The model highlights two central problems: (i) the aid agencies’ conflicting objectives of transparency and self-legitimization, and (ii) the potential collusion between the evaluator and the project manager. Evidence for the World Bank and different German donor agencies reveals concrete institutional requirements for a reduced evaluation bias and increased transparency.

Abstract

Evaluation is generally considered as an important tool to ensure the effective use of development aid, but it is itself subject to distortions. To derive institutional conditions conducive to effective evaluation, we develop a multi-level principal-agent model focusing on the interests of the different actors involved in the evaluation process. The model highlights two central problems: (i) the aid agencies’ conflicting objectives of transparency and self-legitimization, and (ii) the potential collusion between the evaluator and the project manager. Evidence for the World Bank and different German donor agencies reveals concrete institutional requirements for a reduced evaluation bias and increased transparency.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:08 Research Priority Programs > Asia and Europe
06 Faculty of Arts > Institute of Political Science
Dewey Decimal Classification:320 Political science
950 History of Asia
180 Ancient, medieval & eastern philosophy
Scopus Subject Areas:Social Sciences & Humanities > Geography, Planning and Development
Social Sciences & Humanities > Development
Language:English
Date:2006
Deposited On:05 Nov 2010 08:43
Last Modified:08 Apr 2021 08:33
Publisher:Wiley-Blackwell
ISSN:1363-6669
Additional Information:pre-print: Michaelowa, Katharina and Borrmann, Axel (2005): What determines evaluation outcomes? Evidence from bi- and multilateral development cooperation. Hamburg: HWWA Discussion Paper 310
OA Status:Closed
Publisher DOI:https://doi.org/10.1111/j.1467-9361.2006.00320.x
Related URLs:http://econpapers.repec.org/RePEc:bla:rdevec:v:10:y:2006:i:2:p:313-329

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