Homi Kharas of the Brookings Institute argues that the benefit of aid transparency far outweighs the cost in his new paper ‘Transparency: Changing the Accountability, Engagement and Effectiveness of Aid.’
Kharas points to the ‘3Ws of transparency’: What is being funded and to what end, who is funding it, and where it is located. Kharas demonstrates that this knowledge is essential in bringing greater accountability and effectiveness to aid.
Not only is the current system of reporting to the DAC out-of-date, inaccurate, delayed and without enough geographical detail, accountability and effectiveness of aid money is further undermined by the lack of reporting by emerging economy donors and recipient countries.
In tracing the call for greater transparency in aid from the 1960s, Kharas states that whilst there has long been a concencus for change, there have been reservations at a political level which must now be overcome. Aid transparency is needed more than ever before, and due to the rise of technology, at a lower cost.
Read Kharas’ paper.