Donors don’t like budget aid – they should! | VOX, CEPR's Policy Portal

New article by Axel Dreher, Sarah Langlotz and Silvia Marchesi: "Budget versus project aid: A tradeoff between control and efficiency"
Despite its many benefits, donor governments show little enthusiasm for budget aid, instead preferring to give project aid over which they have greater control. This column argues that budget aid is better than project-specific aid because it attributes full responsibility of expenditure to the recipient government, allowing voters to respond at the ballot boxes to how well the aid is used.

Full article available on