Aid, Rents and the Politics of the Budget Process

This paper analyzes the impact of political institutions and budget governance in aid- and resource-dependent countries. Budget governance refers to the quality of budget outcomes, such as the government’s ability to produce sustainable public finances over time, make efficient use of government resources, and represent citizens’ priorities. The paper discusses some of the challenges of measuring budget governance in aid- and resource-dependent countries. It also focuses on the extent to which countries can produce sustainable fiscal balances over time.

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