EVALUATIONS OF BALANCE OF PAYMENTS SUPPORT - CASE-STUDY OF SWEDEN

The author argues that macroeconomic evaluations of the impact of aid still lack an established methodology. It is mentioned that when asses sing the impact of economic reform programmes, the authors of the vari ous evaluations have encountered a series of problems such as the time span which has often been too short. Very few evaluations address the issue of the extent of 'ownership' of the respective adjustment progr ammes and the degree of domestic political credibility Potential criti cal areas that might be addressed in evaluations could include the fol lowing items: incentive problems related to the high marginal tax on g ood performance implicit in the 'financing gap' approach; the danger o f a soft budget, constraint being introduced by benevolent donors; the danger of programme aid being used to bail out bad performers year af ter year; and the multiple roles played by the IFI as preferred credit ors, major macroeconomic advisers and coordinators of part of the bila teral aid.