Governance in International Aid Projects Governance and Management in International Aid Projects

115 Pages·2016·2.07 MB·English

Running head: Governance in International Aid Projects

Governance and Management in International Aid Projects: A Case Study

Saleem Sheikh
A thesis submitted to Auckland University of Technology in fulfilment of the
requirements for the Degree of Master of Philosophy (MPhil)

2015

Institute of Public Policy

Primary Supervisor: Professor Marilyn Waring
Second Supervisor: Dr. Karen Webster
GOVERNANCE IN INTERNATIONAL AID PROJECTS i
Abstract
The concept of Official Development Assistance (ODA) was put forward to
modernise the economies of the underdeveloped countries in the late 1940s through
financial and technical assistance. Over the years, its scope has been extended to
promote democracy, freedom of speech, and human rights. At the start of this century,
ODA was endorsed as an important tool to achieve the objectives of the Millennium
Development Goals (MDGs). With this, issues regarding aid harmonisation and aid
effectiveness have taken central stage raising questions about how to improve aid
delivery in the presence of old and new multiple donors, multiple recipients and
multiple policy objectives. Given this context, this study explores questions of aid
harmonization, aid effectiveness and governance in Pakistan. Specifically, this study
examines how people in one aid-recipient country, Pakistan, see the issue of aid and
governance. In order to investigate these issues, this project focuses on the experiences,
perceptions and attitudes of nine primary school teachers who were trained as part of
the Educational Sector Reform Assistance (ESRA) project funded by the United States
Agency for International Development (USAID).
This exploratory research project used the qualitative descriptive approach
methodology from the perspective of the postpositive paradigm. Participants were
selected through purposive sampling. The data was collected through semi-structured,
in-depth interviews. The research design was non-emergent. Thus the data was
collected, analysed, and findings were reported in a descriptive fashion.
The results of this study show that while participants recognised benefits of the
training they did not see themselves as the owners of it. For them, the training was
forced onto them and they did not take any responsibility for implementing what they
learned during the training in the absence of a proper monitoring system. This study
GOVERNANCE IN INTERNATIONAL AID PROJECTS ii
found that consultation or a grassroots approach in contrast to a top-down approach
could increase a sense of ownership in the people of aid recipient countries and make
foreign aid projects more successful.
GOVERNANCE IN INTERNATIONAL AID PROJECTS iii
Acknowledgements
Working on this dissertation proved to be a long journey. There were times
when I was in absolute doubt and could not find any motivation to continue. It was the
continuous encouragement, trust, and motivation from my two supervisors: my
primary supervisor Professor Marilyn Waring, and my second supervisor Senior
Lecturer Karen Webster that made it possible for me to keep moving and finish this
research.
I am truly thankful to the participants in this study. They very kindly dedicated
their time to sit down with me and share their experiences and insight to make this
study a worthwhile endeavour. I would also like to acknowledge the help and support
that I received from Dr. Waseem Qazi and Habib Ahmed Khan in contacting and
organising interviews with the participants in Pakistan.
It was a challenge to study part-time with full-time work in a different country.
It was support and encouragement from my family and friends who continued
motivating and pushing me hard to keep going.
Support from the various staff members of the Auckland University of
Technology made it possible for me to finish various tasks and requirements without
any problem and continue working on the thesis.
I humbly acknowledge the efforts of all those people mentioned above who
played a vital role in the completion of this study.
Finally, I would like to dedicate this thesis to all the people who are working
selflessly to make a difference in the lives of the people in the developing world.

GOVERNANCE IN INTERNATIONAL AID PROJECTS v
Abbreviations
AKU-IED Agha Khan University - Institute for Educational Development
CSOs Civil Society Organisations
DAC Development Assistance Committee
ESRA Educational Sector Reform Assistance
GATT General Agreement on Tariffs and Trade
GOVNET Governance Network
GNP Gross National Product
GOP Government of Pakistan
ILO International Labour Organisation
IMF International Monetary Fund
MDGs Millennium Development Goals
NGOs Non-Governmental Organisations
ODA Official Development Assistance
OECD Organisation for Economic Cooperation and Development
OEEC Organisation for European Economic Cooperation
PD Paris Declaration
PDP Professional Development Programme
SEATO Southeast Asia Treaty Organisation
SAPs Structural Adjustment Programmes
UEI United Education Initiative
GOVERNANCE IN INTERNATIONAL AID PROJECTS vi
UK United Kingdom
UN United Nations
UNDP United Nations Development Programme
US United States of America
USAID United States Agency for International Development
WB World Bank
WGA World Governance Assessment
WGI Worldwide Governance Indicators
WWII World War II
GOVERNANCE IN INTERNATIONAL AID PROJECTS vii
Table of Contents
Abstract ....................................................................................................................................... i
Acknowledgements ................................................................................................................... iii
Attestation of Authorship ........................................................................................................ iv
Abbreviations ............................................................................................................................. v
List of appendices ................................................................................................................... viii
List of figures .......................................................................................................................... viii
List of tables ............................................................................................................................ viii
Chapter 1: Introduction ............................................................................................................ 1
Pakistan and Foreign Aid ..................................................................................................... 1
Evolution of Official Development Assistance (ODA) ....................................................... 2
Focus of the Study ................................................................................................................. 6
Some Personal Reflections .................................................................................................... 7
Thesis Outline ........................................................................................................................ 9
Chapter 2: Literature Review ................................................................................................ 10
Preamble .............................................................................................................................. 10
Part One: Official Development Aid ................................................................................. 10
Part Two: Governance and Development ......................................................................... 28
Part Three: Pakistan, Official Development Aid, and Governance ............................... 32
Conclusion ............................................................................................................................ 38
Chapter 3: Methodology ......................................................................................................... 41
Ethics Application ............................................................................................................... 42
Research Design .................................................................................................................. 45
Participants .......................................................................................................................... 45
Data Collection .................................................................................................................... 48
Data Analysis ....................................................................................................................... 49
Ensuring Rigour .................................................................................................................. 49
Ethical Considerations ........................................................................................................ 50
Chapter 4: Findings ................................................................................................................. 53
Profile of Participants ......................................................................................................... 53
Section 1: ESRA Training .................................................................................................. 54
Section 2: Foreign Development Aid ................................................................................. 68
Section 3: Meaning of Governance .................................................................................... 71
Section 4: Governance and Management in Foreign Development Projects ................ 73
Conclusion: Findings .......................................................................................................... 86
Chapter 5: Conclusion ............................................................................................................ 89
References ................................................................................................................................ 92
Appendices ............................................................................................................................... 98
Appendix A – AUTEC. Approval 21 February 2012 ...................................................... 98
Appendix B – AUTEC. Approval 3 April 2012 .............................................................. 100
Appendix C – Interview Guide. ....................................................................................... 101
Appendix D – Participant Information Sheet. ................................................................ 103
Appendix E – Consent Form ............................................................................................ 105
Appendix F – Profile of Participants ............................................................................... 106
GOVERNANCE IN INTERNATIONAL AID PROJECTS viii
List of appendices
Page
Appendix A – AUTEC. Approval 21 February 2012 98
Appendix B – AUTEC. Approval 3 April 2012 100
Appendix C – Interview Guide 101
Appendix D – Participant Information sheets 103
Appendix E – Consent Form 105
Appendix F – Appendix F – Profile of Participants 106

List of figures
Figure 1. Political map of Pakistan 33
Figure 2. ESRA Training. 54

List of tables
Table 1: Nomination: Subcategories and their objectives 55
Table 2: Training: Subcategories and their objectives 60
Table 3: Participants’ perception of Governance 71
Table 4: Change in Perception after the ESRA training 79
Running head: Governance in International Aid Projects 1
Chapter 1: Introduction

In terms of governance, we [the people of Pakistan] never know what sort of foreign
aid is coming, who is in charge of it or who is giving it out and to whom, or on what
grounds they are giving it out, or what their objectives are. No one will tell us.
Participant-0076 *

Pakistan and Foreign Aid
Pakistan came into being in 1947 when the Cold War was just starting to heat up.
Geographically Pakistan was close to the Union of Soviet Socialist Republics (USSR) and
had a choice to join either the communist or non-communist bloc, or to stay neutral. Pakistan
decided to join the non-communist bloc by signing major security treaties such as the
Baghdad Pact and the Southeast Asia Treaty Organization (SEATO) in 1955. Subsequently,
from 1954 to 1965, the United States of America (US) alone disbursed US $1.3 billion in
economic and military aid to Pakistan (Wynbrandt, 2009). During the Afghanistan War from
1979 to 1989, aid disbursement to Pakistan increased markedly due to its geographical
proximity and active involvement in the war such that, from 1980 to 1989, Pakistan received
over US$6 billion (Kundi, 2007). There was a sharp decline in foreign aid during the1990s,
after the end of the Afghanistan War. However, following the terrorist attacks on the US on
September 11, 2001, Pakistan once again became a key partner in the US-led War on Terror
and foreign aid increased dramatically (Fair, 2009).
Over the years, Pakistan has received billions of dollars of foreign aid and loans for
development from various institutions such as the World Bank (WB) and the International
Monetary Fund (IMF). Pakistan was the third largest recipient of foreign aid in the world
from 1996 to 1998, and was ranked fourth in 2011 (Development Initiatives, 2013). Besides
successfully increasing its per capita income, Pakistan has failed to make any notable

* When I asked a question about foreign aid and governance in this study, one of the respondents made this
statement. It sums up a popular perception about foreign aid projects and their management in Pakistan.