Work

Volume, Risk, Complexity: What Makes Development Finance Projects Succeed or Fail?

Year: 2025

Type: article

Abstract: This study presents a quantitative analysis of the determinants of success—and failure—of bilateral development finance projects, based on a unique database covering 5,608 project evaluation results. Linking project success ratings to a comprehensive and partly novel set of explanatory factors along the project life cycle, four research hypotheses are investigated, finding that (I) development finance projects with comprehensive financing are (slightly) more successful, in particular budget funds show a significant positive correlation; (II) the project structure does not significantly influence project success; (III) more-complex development finance projects are less successful, in particular in terms of technical complexity and longer implementation duration; (IV) riskier projects are significantly less successful.

Source: The World Bank Economic Review

DOI: 10.1093/wber/lhaf001

Authors: Yota Eilers, Jochen Kluve, Jörg Langbein, Lennart Reiners

Institutions: Bank for International Settlements, Humboldt-Universität zu Berlin, KfW Development Bank, Asian Development Bank

Language: English

Topic: International Development and Aid

Subfield: Development

Field: Social Sciences

Domain: Social Sciences

SDG: Partnerships for the goals

Open Access status: green

OpenAlex ID: W4407134751