Why should donor agencies care about budget transparency? And what can they do to increase it in the countries they support?

In a new IBP Brief Paolo de Renzio and Vivek Ramkumar describe how a lack of transparency in aid-recipient countries reduces the potential effectiveness of that aid to reduce poverty and lead to sustainable economic growth because of leakages, corruption, and mismanagement.

In aid-dependent countries, improved transparency of aid flows is also key for enhancing domestic accountability around the budget process. In this Brief, the authors also provide general recommendations to the international donor community and International Financial Institutions (IFI) on how they can support better budget transparency practices in countries to which they provide assistance. Read the Brief here.

Do you agree? What else should donors do?