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The benefits of transparency
www.aidinfo.org
Poverty reduction
• Underpins the social contract• Reduces the cost of aid• Increases coordination & predictability• Spreads learning and ideas• Shows taxpayers how effective aid can be
... and so helps to reduce poverty
Diverse uses, common needs
• IATI consultations• Aidinfo use cases• Variety of uses for information• Common needs• Importance of accessibility & diversity
Making information accessible
• One-size-fits-all database will not work• Donors’ role:– Recognise diverse information needs – Detailed, timely, forward looking information – Common international format– Single consistent reporting– Support 3rd party intermediaries
Costs and Benefits
• Work in progress• Large margins of error• Estimates of:– Costs (from IATI donor fact finding)– Efficiency gains (from survey)– Effectiveness gains (from literature review)
• Let’s crowd-source this analysis
Is transparency cost effective?
• Costs (one off)– Implementation - ~$6m (net of HQ savings)– Range ~$4m - ~$8m (But this seems too small?)
• Efficiency gains (IATI signatories)– Eliminate duplicate reporting - $8m a year ($4m - $10m a year)
• Effectiveness gains (IATI signatories)– Lower diversion – ~$900m a year ($100m - $4bn a year) – Greater predictability - ~$900m a year ($375m - $1.8bn a year)
• Not quantified here:– Better coordination– Better aid allocation– Better research– Greater willingness to give aid
Cost effectiveness summary
• Central estimates for IATI donors:– Net benefits $1.6 billion a year– Equivalent to permanent global ODA rise of 1.3%
• All DAC donors: equivalent to 2.3% increase• Efficiency gains cover costs in about a year• Effectiveness gains cover costs in about a day• Conservative, but uncertain, estimates
Conclusions
• Diverse users, common needs• Enabling environment for intermediaries• Costs of order of tens of millions, direct savings• Benefits of order of billions of dollars• Equivalent to additional $1.6 billion• Or 1.3% of global ODA
