Abstract

Research background: This article focuses on the official Czech international development (ID) aid and the factors affecting the project success in terms of cost and time variance from the plan. As per research by Ahsan and Gunawan (2010), ID projects by Asian Development Bank are finalised within their budget, however, with delays, and the result depends on the developing country. Previous article written by the author confirmed the findings also for the Czech development aid and established that cost variance is affected by the type of implementing agencies, whereas time variance depends on the developing countries. Purpose of the article: The purpose of this article is to further analyse ID projects by the Czech Development Agency and evaluate the influence of sector topics, budget size and type of financing on the time and budget management of Czech ID projects to determine what parameters could improve the efficiency of Czech ID projects. Methods: Information on all official projects conducted from 2016 to 2019 used in this article are non-public and have been received directly from the Czech Development Agency. They are first summarised in a descriptive statistics part and then analysed by non-parametric Kruskal-Wallis test. Findings & Value added: The results show that budget size, financing type and sector topics influence the cost variance, with smaller projects financed as public procurement achieving bigger savings. For time variance, there are significant differences only between different categories of the sector topics with projects focused on the environment leading to the biggest delays.

Highlights

  • The Czech Republic spends annually around 0.13% of GNI on development aid (OECD, 2019)

  • The article is divided into three parts, the first chapter describes the methodology used, the second chapter presents the results of both descriptive statistics and Kruskal-Wallis test and discussion is held in the last part

  • As per the results presented above, project sector influences both cost and time variance of international development (ID) projects

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Summary

Introduction

The Czech Republic spends annually around 0.13% of GNI on development aid (OECD, 2019). As its international development projects are funded by public money, a focus is paid on their results. This study aims to estimate what project characteristics may influence the time and cost variance of the ID projects in order to improve the efficiency of development aid. Previous research has shown that the cost variance is affected by the type of implementing agency, while the time variance by developing countries. This article focuses on three other factors that can influence time and cost variance of the official Czech development projects, i.e. sector, budget size and financing. The article is divided into three parts, the first chapter describes the methodology used, the second chapter presents the results of both descriptive statistics and Kruskal-Wallis test and discussion is held in the last part. The second chapter is organised into three sub-chapters, one for each factor

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