Governance/anti-corruption indicators in budget support: What specific governance indicators/benchmarks (particularly in relation to anti-corruption) have been used in budget support programmes to act as incentives for reform (within the overall framework/objective of achieving fiscal sustainability)? (If available, please include any information on which indicators have been successful and unsuccessful as an incentive and why).
Key findings: Budget support is untied aid channelled directly to a country’s budget in support of a national development strategy (or in the case of sector support, in support of a particular sector or purpose).While there is literature that discusses the design and effectiveness of governance indicators generally, there is very little documentation specifically on the effectiveness of budget support indicators, and even less that focuses on governance and anti-corruption indicators. This helpdesk research report thus relies on more general literature on indicators used in budget support and on expert comments. It also presents specific PFM (and in some cases anti-corruption) indicators that have been used in budget support programmes (primarily from PAF matrices), although there is little information on which indicators have been successful and unsuccessful as an incentive.
Full response: http://www.gsdrc.org/docs/open/HD751.pdf