Budget support in fragile states : feeding the beast or building resilience?
Title: Budget support in fragile states : feeding the beast or building resilience?
Author: DE CATHEU, Juana
Series/Number: EUI RSCAS; 2013/25; Global Governance Programme-46; Global Economics
Budget support is an aid modality that has been making headlines, usually triggered by cases of corruption or unsavoury moves by recipient governments. Such headlines raise questions about the impact of budget support, and suspensions thereof, both on the poorest citizens in the recipient countries, and on the elite bargains made behind closed doors: does budget support feed the beast of exclusionary elites and institutions, or does it foster accountability and inclusion? Arguing that accountability specifically, not capacity, determines the appropriateness of budget support to fragile states, this policy paper distinguishes fragile states where it can be beneficial from those where it likely to do harm. And in those countries that are promising, budget supporters should squarely aim for statebuilding and social cohesion, rather than focus on short-term results and “hope for the best” regarding long-term outcomes.
Subject: Budget support; Fragile states; Governance; Inclusion
Type of Access: openAccess