The Interacting Interest Relationship of the Donor, the Evaluator and the Quality Supervisor of a Rural Development Project

Abstract

Beginning with the game relationship of the donor, the quality supervisor and the evaluator in the process of evaluating a rural development project, this paper analyzes the factors that have effects on the quality evaluation of the project, and proceeds to conclude that there exists information asymmetry in the agency relationship the project donor has with the project quality supervisor and the project evaluator, and that both the quality supervisor and the evaluator are likely to pose a moral hazard. It also discovers that a collusive relationship exists between the quality supervisor and the evaluator in the process of project evaluation, that the evaluation strategy chosen by the evaluator has a direct effect on the quality evaluation of the project, and that an incentive and penal mechanism put in place can help achieve the consistency of the parties' interests and objectives.