During the past decade, donors and recipient countries have shifted increasingly from a project approach to development aid, to general and sector budget support. This is because, by contributing to the overall national development, it was felt that budget support would enhance the effectiveness and efficiency of development cooperation. Proponents and opponents hold strong views about the effectiveness of budget support, but these views are not necessarily supported by rigorous evidence.
Mozambique is one of the most aid-dependent countries, with between 40 and 55% of the government budget financed through aid. In 2009, 19 development partners signed the second Memorandum of Understanding with the government to provide aid to Mozambique in the form of different types of budget support.
The aim of the evaluation
Itad is leading this multi-donor evaluation of budget support in Mozambique, contracted by the European Commission. The objective of the evaluation is to assess to what extent the General Budget Support and Sector Budget Support in Mozambique achieved its expected results. The evaluation will take stock of what has been achieved, with the main purpose to be forward looking, drawing out the lessons and a corresponding set of recommendations for the future.
The evaluation focusses on the impact of budget support on governance and reform, economic growth and poverty reduction. The impact of policy dialogue on reforms is also one of the key issues. Itad is partnering with Fiscus (UK) and MB Consulting (Mozambique) for the evaluation.
Our approach has been developed based on our team’s extensive experience of evaluations of budget support in other countries, such as the evaluation of budget support in Tanzania, using the OECD-DAC budget support evaluation methodology. This comprises mixed methods, including document review, key informant interviews, data analysis, econometrics and site visits (reality-checking). The evaluation follows a three-step approach looking at inputs, outcomes and impacts.