The Success of Infrastructure Projects in Low-Income Countries and the Role of Selectivity

Nicola Limodio

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International Development and Aid Construction Project Management and Performance Public-Private Partnership Projects

Abstract

This research analyzes the success of the infrastructure projects financed by the World Bank, focusing on the causal link between the quality of project implementation and its outcome. The results show that the success of infrastructure projects depends fundamentally on the quality of implementation. Although bad implementation can harm structurally solid projects, good implementation cannot make structurally weak projects successful. This leads to the conclusion that governance and selection of well-designed projects are essential for success and, in order to improve project outcomes, multilateral development banks may need to align their incentives toward this objective and invest more in governance and capacity building.

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References

1997Africa's Growth Tragedy: Policies and Ethnic Divisions 1994World development report 1994 : infrastructure for development 2006The Increasing Selectivity of Foreign Aid, 1984–2003 1996Africa's Growth Tragedy : Policies and Ethnic Divisions 2017International Country Risk Guide 1998Does Economic Analysis Improve the Quality of Foreign Assistance?2000Supervision and performance: the case of World Bank projects 2005Sowing and Reaping: Institutional Quality and Project Outcomes in Developing Countries

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2016Too much and too fast? Public investment scaling-up and absorptive capacity 2022A Puzzle with Missing Pieces: Explaining the Effectiveness of World Bank Development Projects 2012Assessing the contribution of donor agencies to aid effectiveness: The impact of World Bank preparation on project outcomes 2012International donor agencies’ incentive structures and foreign aid effectiveness 2019Lessons on Foreign Aid and Economic Development

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