Examining Aid Accountability in International Development

April 2015

As globalization has become a part of our everyday lives, so, too, have the many aid-related international organizations. With this, the problem of aid accountability arises– how do we ensure that aid dollars are being used effectively and efficiently? Aid accountability in international development is a complex issue with many problems that hinder aid development from reaching its full potential. These problems include aid organizations not being held accountable to donors and stakeholders, dispersion of aid dollars, diversion of resources, and other secondary problems that arise because of intervention by aid organizations. This memo examines how the criteria used to evaluate the effectiveness of aid dollars have evolved over time. Next, this memo inspects current standards in aid distribution, possible alternatives to the status quo, and the risks and assumptions associated with alternatives. Logic models and outcome matrices are then used to determine the most promising solution to ensuring aid accountability. This solution, despite being a viable policy option for many organizations, may not fit the needs of all organizations. Every organization should evaluate the tools at their disposal and decide, based on the analysis available, which mechanisms will befit their needs.