This private round-table on aid effectiveness focused on a study for the EU by Arne Bigsten, Jean Philippe Platteau and Sven Tengstam, which quantifies the benefits of measures to improve aid effectiveness.

Arne Bigsten presented the study, and Vincent Grimaud, Head of Aid and Development Effectiveness and Financing in DG DEVCO in the European Commission, came over from Brussels to participate in the discussion. From ODI, Romilly Greenhill and Annalisa Prizzon presented their commentary on the studyand  Matthew Geddes presented his work on how the EU fares in donor indices.  Simon Maxwell, who has examined the practical implications of the study, has chaired the discussion. 

The study by Arne and his colleagues is very important in terms of current aid debates. It looks at:

1. The saving in transactions costs associated with:              
   • Reducing the number of countries covered by donors;
   • Moving from project to budget support.
2. The benefits of reduced untying.
3. Reducing the volatility and unpredictability of aid.
4. The impact on growth.
5. The benefit of reallocating aid so as to maximise the impact of EU aid on poverty reduction.

The meeting discussed the analysis, but also the practical implications of this study – for the European Commission, for the EU more generally, and for the wider aid community.

An event summary is available here.