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Donor countries and multilateral organizations may pursue multiple goals with foreign aid, including supporting low-income country development for strategic/security purposes (national security, regional political stability) and for short-and long-term economic interests (market development and access, local and regional market stability). While the literature on the effectiveness of aid in supporting progress on different indicators of country development is inconclusive, donors are interested in evidence that aid funding is not permanent but rather contributes to a process by which recipient countries develop to a point that they are economically self-sufficient. In this report, we review the literature on measures of country self-sufficiency and descriptive evidence from illustrative case studies to explore conditions associated with transitions toward self-sufficiency in certain contexts.
This brief analyzes the indicators used by the World Bank in its Project Appraisal Documents (PAD) to measure the outputs and outcomes of 44 Water, Sanitation and Hygiene projects in Africa and Asia from 2000-2010. This report details the methods used to collect and organize the indicators, and provides a brief analysis of the type of indicators used and their evolution over time. A searchable spreadsheet of the indicators used in this analysis accompanies this summary. We find that some patterns emerge over time, though none are very drastic. The most common group of indicators used by the World Bank are “management” oriented indicators (28% of indicators). Management indicators are disproportionately used in African projects as compared to projects in Asia. Several projects in Africa incorporate indicators relating to legal/regulatory/policy outcomes, while projects in Asia do not. In recent years, the World Bank has used fewer indicators that measure service delivery, health, and education and awareness.