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Aid harmonization: U.K and Denmark aid policies towards Tanzania and Ghana (2005-2010)
By the beginning of the Third Millennium, donors reassessed the aid architecture and adopted a new aid regime based on the partnership principles to attaine poverty reduction. Harmonization is one of core principles to increase aid effectiveness because it has potential benefits for donors through m...
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| Format: | Thesis |
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AUC Knowledge Fountain
2012
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| Summary: | By the beginning of the Third Millennium, donors reassessed the aid architecture and adopted a new aid regime based on the partnership principles to attaine poverty reduction. Harmonization is one of core principles to increase aid effectiveness because it has potential benefits for donors through minimizing transaction costs and for recipient countries by improving the predictability of budget aid. However, empirical studies and international reports showed that the degree of harmonization is limited. The thesis attempts to explore the possible causes behind limited progress in this principle between 2005 and 2010 through comparing aid policies of two main donor countries in Africa: The United Kingdom and Demark towards Tanzania and Ghana. The thesis finds that the British and Danish aid polices as declared have been affected by Paris principles; nevertheless, their harmonized operations have been conducted on multilateral manner. On the recipient side, the adequate capabilities of Ghanaian governments in addition to the availability of natural resources have enabled the governments to employ harmonized aid while Tanzanian governments have not been able to enhance the degree of harmonization. |
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