Essay On Aid Conditionalities

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This paper exemplifies a fresh perspective on the long-standing debate of the effectiveness of aid conditionalities. This perspective casts a critical eye on the effectiveness of donor institutions and states in enforcing their own rules and goals rather than the usual critiques on recipient countries. In the past, political scientists and donor institutions and states have blamed the failure of aid conditionalities on recipient country deficiencies and factors as general as domestic regime type (Kono and Montinola 2009) and political economy (Molenaers et. al 2015) and as specific as recipient government’s degree of commitment to poverty reduction programs (Cordella and Dell’Ariccia 2002). On another note, this quantitative analysis will…show more content…
For the Independent Evaluation GroupWorld Bank Project Performance Ratings dataset’s “Borrower Performance” rating, I transformed the qualitative scale into a quantitative one by allocated specific designations (from “Highly Unsatisfactory” to “Highly Satisfactory”) numerical assignments of 1 to 4. However, in midway through 2006, the Independent Evaluation Group changed its rating system from a four-point system (“Highly Unsatisfactory,” “Unsatisfactory,” “Satisfactory,” and “Highly Satisfactory”) to a six-point system (“Highly Unsatisfactory,” “Unsatisfactory,” “Moderately Unsatisfactory,” “Moderately Satisfactory,” “Satisfactory,” and “Highly Satisfactory”). Therefore, I leave out 2006 from my dataset because I am not able to discern which 2006 projects are evaluated using which point system. To make the ratings consistent across the different point systems, I reorganized the six-point system within the 1 to 4 rating scale (HU=1, U=1.6, MU=2.2, MS=2.8, S=3.4, HS=4). I also ignored projects that were not rated and/or were regional projects not specific to an individual country. Once all individual projects had a numerical “Borrower Performance” rating, I averaged all of the individual project ratings for a single year in a single country, resulting in a single number for each country over each year.
For the World Bank Projects & Operations dataset, I totaled all individual project costs within a single country and in a single year. This
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