Good Countries or Good Projects?

This paper examines the micro and macro
correlates of aid project outcomes in a sample of 3,821
World Bank projects and 1,342 Asian Development Bank
projects. Project outcomes vary much more within countries
than between countries: country-level characteristics
explain only 10–25 percent of project outcomes. Among macro
variables, country growth and the policy environment are
significantly positively correlated with project outcomes.
Among micro variables, shorter project duration and the
presence of additional financing are significantly
correlated with better project outcomes. In addition, the
track record of the project manager in delivering successful
projects is highly significantly correlated with project
outcomes. There are few significant differences between the
two institutions in the relationship between these variables
and project outcomes.