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Development In AfricaRefocusing the lens after the Millennium Development Goals$
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Hany Besada and Timothy M. Shaw

Print publication date: 2015

Print ISBN-13: 9781447328537

Published to Policy Press Scholarship Online: May 2016

DOI: 10.1332/policypress/9781447328537.001.0001

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Reforming the Development Banks’ Country Policy and Institutional Assessment as an aid allocation tool: the case for country self-assessment

Reforming the Development Banks’ Country Policy and Institutional Assessment as an aid allocation tool: the case for country self-assessment

Chapter:
(p.283) Ten Reforming the Development Banks’ Country Policy and Institutional Assessment as an aid allocation tool: the case for country self-assessment
Source:
Development In Africa
Author(s):

George Kararach

Abbi Mamo Kedir

Frannie Léautier

Victor Murinde

Publisher:
Policy Press
DOI:10.1332/policypress/9781447328537.003.0011

In Africa, the World Bank and the AfDB have been the two major players in the arena of multilateral aid. Both have been redefining aid conditionality to the continent since the early 1980s. This has implied a move away from an emphasis on structural adjustment, where finance was provided in return for the promise of policy reforms, to disbursement of funds conditional on reforms already achieved. The new practice is known as aid ‘selectivity’ or performance-based aid. Whenever aid flows are allocated selectively, donors set conditions or triggers for disbursement according to the achievement of prior policies and institutions. So funds are withheld from countries until they change their policies or institutions to set benchmarks. The World Bank and the AfDB base their allocations on an assessment mechanism called the Country Policy and Institutional Assessment (CPIA). The use of the CPIA by donors have had significant ramifications for Africa to the extent that there is a moral, economic and political imperative for countries to conduct a self-assessment. Indeed, as part of the post-2015 development agenda, African countries need to have a greater voice on aid allocation policy if they are to be at the ‘table’ as equal partners.

Keywords:   Country Policy and Institutional Assessment (CPIA), aid selectivity, performance-based allocation, self-assessment, voice

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