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@article{ART001842274},
author={Hwayoung Lee and Minah Kang},
title={Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory},
journal={Korea Social Policy Review},
issn={1226-0525},
year={2013},
volume={20},
number={4},
pages={77-116},
doi={10.17000/kspr.20.4.201312.77}

TY - JOUR
AU - Hwayoung Lee
AU - Minah Kang
TI - Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory
JO - Korea Social Policy Review
PY - 2013
VL - 20
IS - 4
PB - Korean Association of Social Policy
SP - 77
EP - 116
SN - 1226-0525
AB - Governance among actors involved in development aid are getting attention as oneof the important factors that affect aid effectiveness. In development aid relationships,multiple layers of delegation or co-operation of tasks occur, of which maincharacteristics are information asymmetry and difference in preferences betweenthe parties. This feature constitutes principal-agent relationships and subsequently,principal-agent problems occur in each related step. This article explains how principal-agent relationships are formed within donorcountry, between donor-recipient countries, and within recipient country and reviewswhat incentive mechanisms for addressing principal-agent problems exist ineach stage and what another alternatives can work. Within the donor country, thepublic is currently hardly playing the role as a principal due to the lack of understandingabout development aid, which makes transparency a critical issue. Between the donor and recipient countries, often problems of conditional aid arebeing recognized among developing partners and approaches that emphasize theownership of recipient country are getting attention as alternatives. At the sametime, there are demands for new approaches that may solve the ‘broken informationfeedback loop.’Overall, as it seems that no single solution can address every principal-agent problems,approaches that are based on each country’s unique context and its aid objectives should be prepared. Finally, the traditional the principal-agent model mightbe required to be modified with new interpretation with the changing dynamics ofrelation in actors involved in development aid that emphasize recipient countries’ownership.
KW - Development aid;governance;principal-agent;conditionality;ownership
DO - 10.17000/kspr.20.4.201312.77
ER -

Hwayoung Lee and Minah Kang. (2013). Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory. Korea Social Policy Review, 20(4), 77-116.

Hwayoung Lee and Minah Kang. 2013, "Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory", Korea Social Policy Review, vol.20, no.4 pp.77-116. Available from: doi:10.17000/kspr.20.4.201312.77

Hwayoung Lee, Minah Kang "Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory" Korea Social Policy Review 20.4 pp.77-116 (2013) : 77.

Hwayoung Lee, Minah Kang. Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory. 2013; 20(4), 77-116. Available from: doi:10.17000/kspr.20.4.201312.77

Hwayoung Lee and Minah Kang. "Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory" Korea Social Policy Review 20, no.4 (2013) : 77-116.doi: 10.17000/kspr.20.4.201312.77

Hwayoung Lee; Minah Kang. Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory. Korea Social Policy Review, 20(4), 77-116. doi: 10.17000/kspr.20.4.201312.77

Hwayoung Lee; Minah Kang. Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory. Korea Social Policy Review. 2013; 20(4) 77-116. doi: 10.17000/kspr.20.4.201312.77

Hwayoung Lee, Minah Kang. Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory. 2013; 20(4), 77-116. Available from: doi:10.17000/kspr.20.4.201312.77

Hwayoung Lee and Minah Kang. "Roles and Responsibilities of Actors in Development Aid: Applying the Principal-Agent Theory" Korea Social Policy Review 20, no.4 (2013) : 77-116.doi: 10.17000/kspr.20.4.201312.77