What Are The Main Challenges For Aid Effectiveness And How Does Open Data Address These Challenges?

1662 Words Nov 15th, 2016 7 Pages
Open Development
1. What are the main challenges to aid effectiveness, and how does open data address these challenges? The main challenges to aid effectiveness are high complexity, enormous transaction costs, lack of strategic and holistic approaches, and lack of country ownership. High complexity involves the coordination between numerous international aid agencies, and within those aid agencies. The United States, for example, has been said to have contradictory, as well as competing, objectives within its aid system. This system, therefore, is said to be “disjointed and increasingly difficult to manage.” Enormous transaction costs are a result of too many cooks in the kitchen, so to speak; the saturation of separate aid agreements and initiatives have lead the World Bank to determine that a singular, coherent strategy is far from possible. This can be a burden on all parties, but can be especially trying for the recipients of the aid. A lack of strategic and holistic approach is yet another challenge when it comes to aiding a nation. While short-term, project-based success is often reported, there has not been any consequence thereafter of sustainable impact or long-term advancement. The “micro-macro” paradox here lies within the fact that projects often become ends within themselves, and aid agencies fail to account for transformation across the countries in terms of all areas affected (e.g., economically, socially, etc.). People within the country also have to…

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