Evans School Policy Analysis & Research Group (EPAR)

Aid donors are interested in the arguments for allocating aid via bilateral versus multilateral channels, and specifically in understanding which channel is more “effective” at supporting positive development and social outcomes. We contribute to the literature on this subject by summarizing recent OECD data on aid flows and reviewing the theoretical arguments from the aid literature on the different characteristics supporting effectiveness of bilateral versus multilateral aid. We then review the empirical literature, analyzing 40 papers that study the effectiveness of different aid channels on various outcomes. Many studies do not directly compare the effectiveness of aid channels, and the studies vary in how aid channels are defined, measured, and evaluated. Further, these studies do not directly test the hypothesized advantages of one channel of aid versus another; rather they test bilateral versus multilateral aid flows associations with development outcomes, assuming some causal mechanism is at work to explain differences in impact. We evaluate studies reporting the impacts of aid on GDP growth, governance, government investment spending, health, the HDI, poverty, and private investment, and find no consistent evidence that either bilateral or multilateral aid is more effective. The lack of conclusive evidence supporting either aid channel is likely related to differences in the methodologies of the studies included in this review, but may also be due to differences in how the theoretical arguments for the effectiveness of either channel apply in different circumstances.

This report summarizes current trends in the application of Development Finance Institution (DFI)-based returnable capital finance in developing countries, with an emphasis on “pro-poor” development initiatives. We begin by reviewing the financial instruments used by DFIs. We then review the major DFI providers of returnable-capital based finance, drawing on past and present peer-reviewed articles and published reports exploring trends in the uses of different returnable capital instruments over time. Finally, we conclude by further examining recent efforts to use returnable capital to finance development initiatives explicitly targeting the poor.

The following brief details the various policies surrounding donor agency salary supplementation (or top-up) to individuals employed in project countries. The goal of this research was to understand the landscape of different agency’s policies regarding salary top-ups for government experts and scientists advising on donor projects. However, information on this specific scenario was limited. The brief covers a range of scenarios in which donor agencies may pay salary top-ups to local, in-country individuals and aims to draw out a number of hypothesized advantages and disadvantages associated with the practice of donor salary supplementation.

Our initial agriculture capacity building search revealed best practices including institutional partnership building, cross-border opportunities such as ‘twinning,’ and views that these practices are most effective when accompanied by appropriate policies and regulatory frameworks to incentivize return on education to home countries. In addition, the literature explained the historical and political context  in which some countries successfully built higher educational capacity, suggesting a set of socio-political conditions necessary for a ‘surge’ in capacity building to occur.  Our results raised questions about challenges shaping these best practices (e.g. “brain drain” leading to the need for cross-border opportunities) as well as possible approaches to address these underlying issues. To further examine identified challenges from our initial findings, we re-oriented our search to investigate retention strategies, regional or intra-national network capacity building approaches, and whether there is in fact a need for higher education capacity in all countries through comparative advantage or otherwise. This report presents a review of the literature on the best and worst practices for national agricultural capacity building when investing in a country's higher education system or when investing directly in national or relevant global research capacity. We find that several countries have successfully employed a variety of retention, return, and diaspora strategies to build capacity by capitalizing on the feedback loops of international mobility.  In addition, several countries in Africa have employed strategies to address the rural-to-urban “brain drain” by prioritizing education of students with post-secondary rural agricultural work experience and strong ties to rural communities in order to return the benefit of this education to local communities. The report discusses these and other strategies as well as analysis related to the ‘whole system effect’ of higher education and subsequent ‘need’ for Higher Agricultural Education (HAE) capacity in all countries.