A report recently published by De Renzio and Angemi finds that a lack of donor aid transparency can contribute to conditions which lead to poor budget transparency in recipient countries.
Looking at the role of donor agencies in promoting or preventing budget transparency in aid-dependent countries, the report says there is an inverse correlation between aid dependency and budget transparency. This is due to poor adaptation of budget transparency practices at the local level and limited emphasis from donors on improving public access to budget information, in addition to efforts being offset by donor fragmentation and lack of transparency.
Budget transparency is essential for enabling the public to hold their government to account for how they use their country’s resources. Budget transparency can also encourage more responsible decision-making by government officials, which can in turn foster an environment of greater public trust. In addition, greater access to budgetary information can enhance the quality of public debate, and the ability of CSOs to contribute to policy-making and budgetary processes.
As aid makes up a large proportion of aid dependent countries’ resources, it is of paramount importance that donors make their aid transparent to enable proper budget planning and transparency for recipients.