U4 Theme:
Corruption in Aid
Not every donor will be equally exposed to corrupt practices, as the types of project, choice of partners, implementing mechanisms, and systems for detection vary considerably. But no aid delivery mechanism is free of corruption and patronage. Combined payments on an effected aid project is often totaled at 30% to 40% of the contract value, sometimes even more. The financial crisis has increased the concern of donors and other development actors that donor country constituencies will pay even closer attention to scrutinizing the use of donor funds in often high-corruption-risk countries. |
Corruption in aid has received increasing attention over the past years from a multiplicity of actors, including the U4 partner agencies.| CONTENTS | |
The "Red Flags" learning tool | |
U4 presentation: "Combating corruption and fraud in international development projects" | |
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This U4 Brief explores the benefits and drawbacks of per diems, especially their potential negative impact on development goals.
In this U4 Issue, a former programme officer at the Norwegian Embassy in Tanzania considers challenges to aid effectiveness in a major natural resources programme.
This U4 Brief argues that aid organisations and all other public organisations should encourage staff report misconduct and corruption as part of their legal and professional duty.
This U4 Issue reviews the information that theory and empirical studies provide on the prevalence of corruption in relation to various aid modalities, the degrees to which corruption distorts the developmental impact of different aid modalities, and how aid modalities affect the governance environment and corruption.
This U4 Brief analyses how pressure to spend funds quickly has led to a heightened degree of embezzlement in the donor-funded projects, and what can be done to minimise the risk.
This U4 Brief describes corruption and fraud schemes encountered by the author during investigations and consulting engagements, primarily in Africa, Central, South and East Asia, on behalf of major international aid organisations over the last ten years. | |
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Corruption in Aid |
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Selected Literature |
| CONTACT |
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Harald Mathisen
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| RELEVANT PRACTICE INSIGHTS |
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| RECOMMENDED READING |
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8-minute video about corruption and aid in Tanzania In his book The World Bank and the Gods of Lending, author Steve Berkman finds nothing but mismanagement and hypocrisy: decades of assistance without any significant improvement in the lives of the poor; billions loaned for improving governance, health care and education with little to show for it; and donor funds given to dysfunctional government institutions or officials with a history of looting national treasuries. The above video features an interview with Steve Berkman. For a discussion on his findings, please see Global Development: Views from the Center blog.  Steve Berkman (2008) Corruption, Anti-corruption Efforts and Aid: Do Donors Have the Right Approach? Kolstad, I, Fritz, V and O’Neil, T (2008) Detailed Implementation Review India Health Sector 2006-2007 Volume I World Bank, Department of Institutional Integrity (2007) |