Fragmented Foreign Aid

A new report from the OECD Development Centre makes a number of interesting observations on fragmentation of aid delivery:

  • In 2007, there were more than 132,000 ongoing ODA projects around the world
  • Since the early 1990s, we’ve seen an increase in the number of projects that is higher than growth of aid budgets (meaning move towards smaller projects)
  • There has been a major shift of focus from production and economic development to social sectors
  • Social sector aid is more fragmented than other sectors (the concept of high fragmentation refers largely to too many people doing too many overlapping tasks without too much communication.)
  • One of the reasons for increased emphasis on social projects is that with increased pressure on aid agencies to show tangible results there is greater emphasis on short-term projects with well-identified outputs that fit better the conditions of social sectors
  • Very fragmented aid distribution is just as bad as low levels of fragmentation

Read the full report here.

Published Date: February 10, 2010