In this article, it was highlighted that the effectiveness of external public development finance flows is currently at a turning…
Abstract
This study aims to outline key areas of future research to strengthen the effectiveness of development cooperation. The framework of principal-agent relationships has been consistently applied to research exploring the political economy of development cooperation. While it is a valuable conceptual framework, most of the time, it has resulted in research that is primarily focused on the actions of donors. This study highlights this bias and focuses instead on a research agenda that centres on the agency of actors in recipient countries. The paper uses analytical tools from the field of political economy. Specifically, it reviews the current debates at the global level, and how these translate in practice in the context of recipient countries. The study concludes that a future agenda requires, most importantly a change of perspective, from the agency of donors to the agency of recipient countries without overlooking the power asymmetries inherited in cooperation among countries of different levels of development. After the extensive review of cases of development cooperation, it shows that the principles of ownership, accountability, transparency and predictability remain relevant. However, a future agenda needs to explore more how recipient countries deal with these concepts in practice.