A Case for Increasing Efficiency of Road Development Aid

Abstract

The millennium development goals (MDGs) of the United Nations and the Paris Declaration of the Organisation for Economic Co-operation and Development have spurred aid managers–-those who oversee monies given to developing countries–-to reform their operations to increase aid effectiveness. Aid managers have responded by reforming investment strategies and partnerships with aid recipients. Road development, which has been a target of aid for decades, has benefited from this effort. More financing is available for road development now than a decade ago. However, more funds mean heavier burdens for aid recipients and managers. Both parties must improve the efficiency of aid (i.e., must “do things right”) so that macrolevel targets such as the MDGs can be achieved on time. A preliminary analysis of a sample of road projects in Asia and a review of relevant literature found several factors that limit the efficiency (i.e., the delivery of projects on time and on budget) of aid for road development. These factors are divided into two categories: aid allocation and aid management. Often underprepared and poorly articulated plans and inadequate stakeholder involvement derail the efficiency of aid allocation. Aid management inefficiencies also may be the result of inexperienced staff, rigid procurement and contracting methods, weak construction project management, and inadequate asset preservation. These factors have led to long delays in project delivery and cost overruns during implementation and to short service lives and poor transportation quality after implementation. This situation could change if aid managers pay increased attention to project management and better balance policy work and project implementation work.