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  • Defragmentation: What Can Donors Do?

    This is a follow-up note to the ISE Development Practice Note on the
    consequences of donor-induced fragmentation, which argued that the way development partners have managed their ODA spending and development programs has resulted in what ISE termed “donor-induced fragmentation” of government accountability systems.

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  • Issue Brief: Re-examining the Terms of Aid

    The current terms of foreign assistance mean that it often falls short of the goal of supporting countries on their development paths. The New Deal for Engagement in Fragile States, endorsed in 2011, represents a significant breakthrough in changing this dynamic. However the New Deal has yet to fulfill its promise. In Re-Examining the Terms.. Read more

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  • State Building in Conflict-Affected & Fragile States: A Comparative Study

    In conflict-affected or fragile states there is often a significant gap between what the state is able to deliver and what the citizens of that state, as well as international partners, expect the state to deliver. This problem stems in part from international partners focusing heavily on what should be delivered and not enough on how best to deliver it in that particular context. To examine this idea further, the g7+ Foundation has commissioned two initial case studies to try and bridge the gap in understanding and to enable governments to see what has and has not worked in comparable countries. These case studies are intended to give governments and their international partners a clearer understanding of how best to achieve meaningful reform in such countries.

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  • The Blight of Auction-Based Budgeting: What is it and how can we deal with it?

    The pervasiveness of auction-based budgeting is a high-risk problem in aid dependent countries. Allocating a budget based on a willingness to pay is extremely dangerous. Selling off budgets to the highest bidder undermines the whole “public good” concept of allocating budgets in ways that maximise the “bang for buck from the budget” for the benefit of citizens.

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  • State Building in Conflict Affected and Fragile States: A Comparative Study; Technical Working Paper

    This analysis provides a comparison of fiscal performance improvements over time for Afghanistan and Timor-Leste. It reviews changes in the quality of public financial management systems as revealed by Public Expenditure and Financial Accountability (PEFA) assessments, development and fiduciary risk analysis and other indicators, including by looking at the cost effectiveness of aid interventions in.. Read more

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  • The Absorptive Capacity Limit: The point where too much aid becomes bad aid

    Absorptive capacity is not fixed – theoretically, it can be improved by successful reform. Absorptive capacity can change if the underlying drivers of absorptive capacity change. An increased capacity to absorb aid can occur for various reasons, such as increased public financial management competencies or less onerous aid delivery methods that impose lower transactions costs on recipient governments.

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  • Revocable Debt Relief: Transforming a Liability into a Contingent Liability

    Some limited forms of debt forgiveness and assistance have been given to families, including through moratoriums on interest payments and arrangements for no or low-consequence on default. It has also been argued that government can influence banks directly to keep lending rates low in order to avoid increased levels of bad debts and increased social harm, which can occur when the bank is government controlled or heavily bailed out.

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