Water Governance & Reform

  1. Assessing Foreign Aid Effectiveness in the Water Supply Sector: Part 2

    Lead Researcher:
    Eduardo Araral

    There are a growing number of papers examining the notion of aid effectiveness at a sector level. With the development of relatively disaggregated data furnishing details about aid flows to different social sectors, a set of empirical studies has focused on the impact of aid on various development indicators such as infant mortality, primary school enrollments and overall human development. Among the various sectors of interest to developing countries, the water supply and sanitation (WSS) sector is of considerable importance for several reasons, yet rather under-studied.

    In a project funded by IWP, Gopalan and Rajan (2016a) undertook an empirical investigation of the relationship between aid flows to the WSS sector and aid outcomes in terms of improved access to water and sanitation for a large panel of countries, across different levels of income categories. In related work (also as part of the same IWP project), Gopalan and Rajan (2016b) focus exclusively on effectiveness of aid disbursements from multilateral donors to the WSS sector. 

    As a follow up to the above project, there is scope for significant extension of empirical work, as the related empirical literature on aid effectiveness concerning the WSS sector in developing countries is still at a nascent stage.