Better Aid? Yes, Minister

A year ago, ActionAid Italy and and BOND came out with a report on aid agency independence.  Comparing the performance of independent aid ministries with aid agencies that function under another ministry (foreign affairs, as it might be), the report made the case that “there is a positive correlation between a cabinet rank minister and better development systems including aid commitments being honored, aid levels that are less volatile and an increase in aid quality and effectiveness.”  Amongst other things, the report noted that countries with a cabinet member aid minister saw higher scores on the CGD-Brookings Quality of ODA measures of maximising efficiency, fostering institutions, reducing burden, and transparency and learning (see the charts below on efficiency and institutions from the report).

ActionAid Italy sponsored the research because Italy had just appointed a cabinet-level aid minister.  Sadly, a lot of countries have recently gone the other way: New Zealand, Canada, and this week Australia have all downgraded their aid agencies to sub-cabinet status. As the box plots suggest, sub-cabinet agencies can still provide efficient aid. But it is more of a challenge. And if you are a sub-sub-cabinet level agency, like USAID, doubtless its even harder. 

Here’s hoping the Australia, New Zealand and Canada have a clear plan on preserving aid quality absent a voice at the cabinet table.  And that USAID can manage getting maybe one notch up the org-chart tree sometime in the next decade.