Making Foreign Aid Work: Issues of Cost Effectiveness of Educational Aid in Pakistan

The quality of inclusive and accountable institutions in a donor-recipient country determines the effectiveness of foreign aid. This study examined whether the role of donor agency or the implementing agency was more helpful in the successes of two foreign-funded educational interventions in Northern Pakistan. The two interventions, each focusing on teachers’ development program and the capacity development of principals, were funded by two different international donors. The study also provided a comparison of the two international donors working styles and their strategies applied for the execution of their respective projects. The findings of the study, which were generated through qualitative methods, noted wide variations not only in the working strategies of the two donors, but also the role of the executing agency. It was noted that multiple factors determined the productivity of the two projects; one of the elements that contributed the success or failure of the two project was their design or road map. Based on the findings of this study, it was maintained that a proactive role of both the entities is crucial for the success of such interventions.