Aid, Resource Rents and the Politics of the Budget Process

This paper analyzes the combined impact of political, institutional, and budget procedures on budget outcomes in aid- and resource-dependent countries. The paper builds on a new dataset of 47 low and lower-middle-income countries whose economies depend on aid or natural resource inflows between 1995 and 2006. The empirical section identifies some trends that qualify conventional beliefs about the importance of executive power on the budget process and helps identify some areas where more empirical and conceptual research is needed to understand the political factors underlying the budget process and producing budget outcomes.

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Authors

Paolo de Renzio

Senior Research Fellow, Open Budget Initiative

Paolo de Renzio joined the International Budget Partnership in October 2010 as Senior Research Fellow and is based in Rio de Janeiro, Brazil. His research agenda covers a broad range of topics, including budget transparency and accountability, equity and justice in budgeting, taxation and tax expenditures, among others. He also supports the team producing the Open Budget Survey. Prior to joining the IBP, Paolo worked as a Research Fellow at the Overseas Development Institute; as an economist and policy advisor in Papua New Guinea’s Ministry of Finance; and as a UNDP public sector specialist, lecturer, and independent consultant in Mozambique. He has been a consultant for the World Bank, the Organization for Economic Cooperation and Development, the European Commission, and for a number of bilateral donor agencies and international NGOs. Paolo holds a PhD in International Relations from the University of Oxford, where his research focused on the impact of donor policies on budget reforms in developing countries. He also holds an MSc in Development Studies from the London School of Economics and a Bachelor’s degree in Economics from ‘Bocconi’ in Milan, Italy.

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