Summary

This study, published by the DAC, evaluated the experience of General Budget Support over ten years in seven partner countries.

Description

This major evaluation of the effectiveness of General Budget Support (GBS), funded by a consortium of donors including AusAID, was run through the Development Assistance Committee (DAC) of the Organisation for Economic Cooperation and Development (OECD).

The study evaluated the experience of GBS over ten years in seven partner countries to determine to what extent GBS has contributed to sustainable impacts on poverty reduction and growth, and under what circumstances or country contexts.

The study considered the effects of GBS on areas such as public expenditure; planning and budget systems; harmonisation and alignment; policies and policy processes; macroeconomic performance; service delivery; poverty reduction; and sustainability.

Overall findings of the study report include:

• GBS can be effective where partner governments have the political will to reduce poverty, but it is important for donors to assess the risks involved
• Donors should pursue a mix of aid delivery mechanisms customised to individual countries, rather than treat GBS as a panacea
• GBS has strengthened management of public financial systems, improved access to basic services and encouraged greater harmonisation and alignment
• It is too early to draw conclusions on the impact of GBS on poverty and growth
• There was no clear evidence that GBS has been more vulnerable than other aid modalities to fiduciary risks and corruption.

The report also includes recommendations on the use and design of GBS instruments, including approaches to capacity development, performance assessment and risk management.

All documents related to the study, including the full study report and individual country reports for Vietnam, Nicaragua and five African countries, are available on the DAC website [external website]. Note that the synthesis report on the DAC website is very large and may not download. A more accessible copy is available below.

Evaluation of General Budget Support: Synthesis Report [PDF 1.5MB]

Available: Electronic version only

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