The impact of donor and recipient government policies and practices on the effectiveness of foreign aid to a middle income developing country: case studies from Jordan

This research investigates the foreign aid policies and practices of donor countries and
of Jordan, a middle-income aid recipient country, through an examination of case
studies of recent aid provision to Jordan. It examines the bearing of these policies on
the effectiveness and efficiency of aid projects. The research concentrated on four
case studies carefully chosen by the criteria of different donor nations and policies;
and the different nature of the projects that cover the four main areas of development
needs for Jordan. The case studies consisted of analysis of documentation and
outcomes, and significant interviews with the selected participants.
The case studies were chosen to explore the different mission statements, policies and
practices and included the GTZ- funded Petra Stone Preservation Project, the USAIDfunded
ICT Initiative, the DFID-funded Capacity Building in the Management of
Jordan’s Education Services Project, and the JICA-funded Improvement of Water
Supply System to Greater Amman Project.
The study examines the effectiveness of aid in poor policy environments. It shows
that the role of donors in ensuring the effectiveness of the aid they present goes
beyond selecting recipients based on their policies and governance. Indeed, foreign
aid is not donor-neutral and its effectiveness is not only dependent on the quality of
governance and institutions of the recipients. The research demonstrates that a donor’s
national interests and the influence of stakeholders determine the course and benefits
of aid, and that judgements of success or failure vary between the standpoints of the
donor and the recipient.
The study investigates the impact of a number of variables on the effectiveness of
foreign aid. Those variables include aid project design and delivery mechanisms, and
institutional capacity and cultural constraints of aid recipients. The research focuses
on relationships between donors and recipients and the differences in interests and
objectives. It also looks at the impact of conditionality and tied aid on the sustainable
benefits of the aid intervention.
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Although existing literature does address some of these considerations, there is very
little direct evidence which links development theory with detailed practical examples.
Where such examples are available, they are invariably weighted heavily by evidence
which originates with, and is interpreted through, donor perceptions. This study
provides a balanced analysis of four initiatives taking account of both donor and
recipient expectations, experiences and assessments.