Transparency in Aid Policy

By Dr Arvind Kumar

According to just-published research by New York University Economics Prof William Easterly and Claudia Williamson, as reported by IRIN, Norway, Sweden, Finland and several UN agencies including the World Food Programme, the UN Population Fund, and the UN Development Programme (UNDP) rank among the lowest out of 42 bilateral and multilateral donors measured for aid transparency,

The US Agency for International Development (USAID) and the UK Department for International Development (DFID) scored highest. Researchers measured transparency by analyzing donor reporting data to the Organization for Economic Co-operation and Development, Development Assistance Committee (OECD-DAC); publicly available information; how fully donors responded to direct requests for information concerning how many people they employed; their administrative costs; salaries and benefits; and total development assistance disbursed.
Finland, Norway and Sweden were found to be poor on data sharing. UNDP fared worst partly because it published no information online, nor would it respond to any requests for information. While recognizing that it is hard to accurately measure transparency of all donors, Prof Williamson stressed that nevertheless their findings show progress on donor transparency is moving too slowly. Four European donors – Denmark, the European Commission, Finland and the Netherlands – have agreed to join the UK in meeting the aid transparency standard set by the International Aid Transparency Initiative, by the end of 2011. The goal entails making aid spend information easier to access, use and understand. Donors will discuss aid transparency challenges when they meet in Busan, South Korea, at the fourth annual aid effectiveness forum at the end of 2011.