countries need to improve their governance and build the capacity of the public sector to improve living standards, the Bank …'s performance in assisting governments in building state capacity and achieving better governance outcomes has been disappointing …

This study contributes to the attendant literature by bundling governance dynamics and focusing on foreign aid … instability instead of foreign aid. We assess the role of foreign aid instability on governance dynamics in fifty three African …: total aid, aid from multilateral donors and bilateral aid. Principal Component Analysis is used to bundle governance …