Abstract: Bilateral or multilateral organizations control about 90% of official overseas development assistance (ODA), much of which is wasted. This note traces aid failure to the daisy chain of principal-agent-beneficiary relationships linking rich donors to aid bureaucrats to poor recipients. Waste results when aid middlemen (un)intentionally misdirect ODA. Waste can be reduced by clarifying domestic goals for ODA, using fewer middlemen with greater intrinsic motivation, empowering recipients, and/or replacing bureaucracy with markets.
The key concept in this paper is "intrinsic motivation," the idea that people do the right thing because they want to, not because they are told to do so or are paid to do so. (For more, listen to this podcast with Daniel Pink.)
Intrinsic motivation is important in water, because managers rarely face oversight while acting or punishment for failure.
Sometimes, managers fail us.
The board voted to award itself more perks by approving - on a 3-2 vote - giving each member a credit card.In Israel (via TS),
This kind of move not only is a slap in the face to a public clamoring for cities and water districts to stop wasting taxpayer and ratepayer dollars, but it proves the point. These agencies exist above the fray, often independent of public input, making decisions for their own benefit.
WILL CHARGING more for water now make us consume less? Only up to a point. Israelis are used to overpaying.Bottom Line: Good people can make our lives better, but people who care more about themselves than us can make us all worse off, whether we are in Pasadena, Tel Aviv, Las Vegas, New York, Moscow, Johannesburg, or... The solution is not warnings, education or dialogue. The solution is to
The availability and affordability of a commodity so indispensable mustn’t become an unsanctioned revenue-generating tool for any government agency, and certainly not a means to cover up officialdom’s egregious failures.
Facile price hikes don’t encourage the public sector to clean up its act. Local authorities in particular are hardly innocent. Their negligence accounts for a whopping 165 million cubic meters lost annually because of substandard municipal equipment or leakages from corroded pipelines.