We define ‘failing states’ are those low-income states in which policy and governance is persistently very bad. We develop a theory of reform in these states in which several characteristics of the society might potentially be the binding constraint on change. We then introduce aid,...

This paper explores the impact of elections on economic policies and governance in developing countries. We distinguish between a structural effect, which increases accountability, and a cyclical effect which may be disruptive. Since the effects are offsetting, neither can be analyzed in...

This paper reviews the policy implications of research on reform in failing states (Chauvet and Collier 2006, 2007a, 2007b, 2008; Chauvet et al. 2006; Chauvet et al. 2007a, 2007b). After providing a precise definition of state failure and reform in such states, we present the internal constraints...

This paper extends and applies principal-agent theory to the performance of donor projects. There is variation in the degree of divergence between the interests of the donor (the principal) and the recipient government (the agent). Further, the effort expended on observation of the agent is a...