A review of the evidence on General Budget Support

General Budget Support is a form of programme aid, and is thus aid that is not linked to projects. The resources flow directly to the Ministry of Finance, but this aid instrument is usually accompanied by a policy dialogue in which donors discuss their preferred policies with the governments of recipient countries. Around the year 2000, General Budget Support (GBS) came to be seen as the more effective aid modality.

In recent years the volume of GBS provided by all donors has decreased. Over the period for which comparable data on Swedish GBS commitments are available, Sweden appears to have allocated a larger share of its aid to GBS, but there is a clear and continuous trend downwards after 2008. This raises the question whether this decline in global GBS, and in Swedish GBS in particular, is related to the evidence on budget support’s effectiveness.

This study aims to review the empirical evidence on the effectiveness of budget support.

Author: Geske Dijkstra

Chair, reference group: Torgny Holmgren

Project manager: Markus Burman

Expected delivery of report: 3rd quarter 2017