CORDIS Project
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This project aims to improve the effectiveness of aid in developing countries by designing better contracts between donors and recipients. It focuses on creating incentive-compatible agreements and testing these concepts through economic experiments to enhance aid allocation and implementation practices.
Official Development Assistance (ODA) represents the major flow of resources from rich to poor countries.
In 2005, $107 billion of ODA were disbursed by the Development Assistance Committee (DAC) to less developed countries.
Of these, $56 billion were provided by EU members.
According to the literature, despite substantial amounts of aid that low income countries have received in the past decades, the expectation that aid boosts investment and growth in recipients has not been met.
The limited e…
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