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Governance or Poverty Reduction? Assessing Budget Support in Nicaragua

Year: 2012

Type: article

Abstract: General Budget Support (GBS) is assumed to lead to more effective poverty reduction through non-earmarking of the money and through recipient country ownership. A second and more hidden objective of GBS, however, is to influence policies and governance of recipient countries. This article develops an evaluation framework that takes the tensions between these two objectives into account. It then assesses the results of GBS in Nicaragua under two administrations. It concludes that for most donors, the aim of improving governance was more important than poverty reduction, in both government periods, thus reducing the effect of GBS on poverty reduction. In addition, donor influence on governance was limited.

Source: The Journal of Development Studies

DOI: 10.1080/00220388.2012.713468

Author: Geske Dijkstra

Institution: Erasmus University Rotterdam

Language: English

Topic: International Development and Aid

Subfield: Development

Field: Social Sciences

Domain: Social Sciences

SDGs: No poverty, Peace, justice, and strong institutions, Partnerships for the goals, Reduced inequalities

Open Access status: green

Funder: Ministerie van Buitenlandse Zaken