A recurrent theme in international development is the issue of measuring and reporting aid effectiveness – this topic gets a lot of buzz, and rightly so. Especially in an age of fiscal constraints, it is ever more important to deploy funding to projects that work. There’s a lot of debate about whether official development aid is more effective than chanelling funding through small local NGOs, big international ones, or something in between. What I find baffling is that a lot of people are willing to say that one is the better alternative – personally, I think that there are some government agencies, some NGOs (large/small) that are good at handling aid money, and others that aren’t. Dismissing one model for the other doesn’t make any sense, given how heterogenous the group is.
As the excellent blog Good Intentions are Not Enough points out, one of the main problems with aid agency/NGO reporting is the fact that negative findings are often swept under the rug, or spun into a positive narrative because these agencies are afraid of jeopardizing their sources of fuding. The problem is that funders often don’t have the capacity to closely monitor/evaluate the impact of their donation, and rely on reporting from their grantee… Which is obviously problematic, for a number of reasons. Even if the grantee outsources evaluation to a third party, the results that filter back to the donor aren’t always guaranteed to accurately reflect reality. There’s also the issue of overstating a crisis or situation to attract funding, another dangerous and unsustainable practice. Organizations and agencies that receive aid are all actually competing for resources – they are, after all, entities that employ staff etc. and whose own existence depends on the existence of a need, a crisis, a situation that has to be addressed. It’s no wonder that they tend to overstate, spin, or misreport the facts to their donors – for some, it is a matter of organizational survival.
It makes it complicated to evaluate the effectiveness of aid in this context: not only do you generally have to contend with insufficient monitoring mechanisms at the project level, which make it difficult to know whether any quantifiable objectives are met, but there are also all these qualitative dimensions that come into play. The straightforward elements of evaluating aid effectiveness can sometimes be overshadowed by subjectivity – the reputation of an organization, who’s on the board, its ability to serve beneficiaries at scale…etc. And let’s not forget the highly political nature of official development aid – the fact that Israel, Egypt, Colombia and Pakistan are the countries which receive the most American official development aid (ODA) is a telling fact (not counting Iraq and Afghanistan.) To genuinely evaluate the effectiveness of aid, we shouldn’t just be looking at the glossy quarterly and year end reports. For some well-entrenched organizations and agencies, the validity of their model, of their projects is barely questioned.
Interestingly, when it comes to ODA, there seems to be a correlation between the degree of aid dependency and lack of transparency and accountability on the part of the recipient government. (“The Open Budget Survey reveals that those countries performing least well in terms of budget transparency practices share certain characteristics, including lower income levels, dependence on foreign aid, reliance on revenues from hydrocarbon extraction, and weak democratic institutions.”) For a lot of these countries, ODA is their principal lifeline, and to stop the flow of funds would probably have catastrophic consequences for the population (actually, that is an assumption – would be interesting to find out what impact lower levels of ODA would have on a country like Liberia)
The whole “aid effectiveness” debate is rather obscured, in my opinion, by political and subjective factors – how can we effectively evaluate the impact of aid when aid disbursements themselves aren’t based on genuine levels of need, but rather on how well the agency, organization or government is able to convince donors of that need. Whether one looks at ODA, or funding for agencies/NGOs carrying out development activities in low income countries, we’re never going to be serious about “aid effectiveness” until we look at the full process, from needs assessment to expost evaluation.
Until we are able (willing?) to do so, we’ll have to accept a certain degree of inefficiency when it comes to aid. It’s not a perfect system, far from it, but the fact that such vigorous debate exists around development aid – in all of its forms – is a hopefully a sign that, as time goes by, we’ll be much more sophisticated when it comes to efficient aid allocation, monitoring and evaluation.
Apparently, World Vision in Liberia didn’t get that memo.
A disturbing example of large scale corruption within NGOs just emerged in Liberia. Astonishingly, 90% of World Vision’s aid to Liberia went missing – they lost $1mm as their project managers were selling food and using construction materials that were supposed to benefit Liberians (World Vision was a sub-grantee for food distribution and food-for-work projects.)
World Vision calculated that $884,681 worth of food was missing, with a total loss, including ocean freight expenses to ship the food to Liberia, of $1.45 million.
The United States spent an additional $300,000 for construction materials, most of which were never used on the intended projects.
Unfortunately for World Vision, it means that their fundraising will suffer as a result – while this is obviously too bad for them and the beneficiaries of their other, functional projects, there is no reason why donors should not sanction World Vision for its lack of oversight. World Vision apparently employs 250 people in Liberia, which is quite significant – besides other international organizations or the government, there are few employers of this size in Liberia (hence the 85% unemployment rate…) and they’ve been operating there since the early 80s – it’s quite unbelievable and unacceptable that it took them 2 years to uncover this massive fraud.
I honestly have no idea how something of this scale could have occured – how is it possible that no one realized that 34 of the towns intended to benefit from this project didn’t exist? It really says a lot about WV’s management capacity and how (un)rigorous their internal monitoring mechanisms are. In addition, in a context of poverty, how could over a million dollars disappear discreetly?
Quite apart from the fact that their Community Resettlement and Rehabilitation Project ended up being a massive failure because of this fraud, it’s also worth noting that their model of importing food from the United States for aid is a flawed approach – why not purchase locally and support the Liberian agricultural sector and its small-holder farmers? Owen Barder recently wrote that instead of importing food aid to Ethiopia, cash transfers would be more effective in combating hunger (which makes a lot of sense, by the way: in doing so, you would reduce the cost of providing food aid). I suppose the risk here is that people may not use the cash for its intended purpose – but the counter-argument is that if the person would naturally use the cash for whatever is their greatest need, which hopefully doesn’t involve getting drunk at the local bar…(more about purchasing food aid locally here, and more about untying food aid here)
I have serious beef with this World Vision drama: not only did they fail the people of Liberia by botching the design and execution of its CRRP, but this is also going to contribute to increasing the distrust for organizations doing similar work. The “public relations disaster” mentioned by Kleinman is not limited to WV, but will have repercussions for other NGOs. Shame.
Warning: shameless plug
As for The Niapele Project’s School Nutrition Initiative in Liberia, we just received a small grant from the GO Campaign to cover the start-up costs of the project. While we certainly don’t have the ability to operate at a scale quite like a large INGO, we’re still planning on feeding 600 kids/day during the upcoming school year. And we take monitoring seriously – in addition to having trustworthy program coordinators, we track the impact of the program through regular medical assessments. We’ll also be sourcing food items for the project from an agricultural co-op in Central Liberia which is run by a local grassroots organization, Malaya. While we don’t have the enormous budget, staff and long standing experience of World Vision in Liberia, Niapele’s work in Liberia is guided by an honest assessment of needs at the community level, and we believe that our small-scale impact will be long lasting.