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The study seeks to identify donor-specific factors that cause donors to delay aid disbursement, and to apply a double standard in dealing with the non-compliance of a recipient with regard to aid conditionalities, a practice that promotes uncertainty in the receipt of aid. Annual panel data over 1970-2000 for the 22 members of OECD's DAC donor group are employed in the empirical study. Our findings suggest that the proportion of pledged aid being disbursed, which shows an increasing trend, is positively affected by the extent to which aid is procurement-tied and by the size of the donor government's expenditure in relation to GDP. On the other hand, the proportion of aid commitments being disbursed, which appears lower for the G7 countries, is negatively influenced by factors such as abundant donor generosity, the predominance of grants in total aid, the specific targeting of aid to lower-income recipients, high growth in donor economy, as well as high level of checks and balances, and polarization between the executive and legislative branches of government in the donor country.

AbstractAid disbursement delays are a significant problem for donors and partner governments around the world, yet there appear to be no agreed definitions or measurement criteria, very little data and hardly any coverage in the literature on development aid. This article addresses some of the definitional and measurement questions involved, and illustrates both the scale and the perceived significance of disbursement delays. It also outlines possible causes and solutions. The article concludes that a strategy which focuses on managing the negative consequences of aid disbursement delays is likely to be more effective than one based on an attempted resolution of its many causes. Copyright © 2005 John Wiley & Sons, Ltd.