Incentive Analysis – a Tool for Sustainable Development

Despite good intentions international developmentcooperation sometimes produces disappointingresults. Sida, along with other developmentcooperation agencies, recognizesthat lack of appropriate incentives may be animportant factor working against the sustainabilityof aid, and that in some cases the sustainabilityof aid is undermined by incentivescreated by aid itself. But exactly how do incentivesaffect outcomes, and how could they bemodified to foster more sustainable results?