Aid, governance and corruption control: a critical assessment

If the OECD??s Development Co-operation Report for 2009 is correct in its claim that ??The international aid effort now adds up to less than the sum of its parts??, then continued rapid growth in aid transfers is likely to contribute to further aid absorption problems, as well as institutional atrophy and deteriorating governance and corruption control among aid recipients. This article considers aid for good governance and anti-corruption, using Tanzania as an example. ??The supply side of aid?? sketches the bigger picture in which such aid is located, stressing collective action problems facing the aid industry in the current period of growth and diversification. ??The consequences of aid proliferation on corruption control in an aid-dependent state?? provides some empirics from Tanzania. ??Conclusions: whither ??corruption control????? draws some conclusions for the future of aid for governance and corruption control. A key message is that donor-driven governance and corruption control initiatives have failed to address the governance weaknesses that excessive and uncoordinated aid has helped to create.