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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.

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Presentation on theme: "The benefits of transparency www.aidinfo.org. Poverty reduction Underpins the social contract Reduces the cost of aid Increases coordination & predictability."— Presentation transcript:

1 The benefits of transparency

2 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

3 Diverse uses, common needs IATI consultations Aidinfo use cases Variety of uses for information Common needs Importance of accessibility & diversity

4 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 3 rd party intermediaries

5 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) Lets crowd-source this analysis

6 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

7 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

8 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

9 Owen Barder


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