Evaluating participation: Empirical analysis of recipient and beneficiary engagement with IFAD international development projects

Active participation of the recipient governments and the beneficiaries is an essential factor in carrying out international development projects. Despite ongoing theoretical discussion on the effects of participation by the recipient governments and the beneficiaries in international development projects, there has been relatively little empirical analysis of the effects of their participation in development projects. To fill this gap, this study examines the relationship between the participation of the recipient governments and beneficiaries, and projects outcomes conducted by IFAD by validating two hypotheses. First, the higher financial contribution rate of the recipient governments results in lower evaluation results of international development projects. Second, the higher financial contribution rate of the beneficiaries leads to higher evaluation results of international development projects. In order to verify these two hypotheses, this study analyzed 166 of the IFAD Project Completion Report Validations. We did ordinary least squares (OLS) regression analyses for the panel data made from them. As a result of the analyses, the inverse relationship between the participation of the recipient governments and the outcome of the assessment holds true. On the other hand, the higher involvement of the beneficiaries leads to better results in the assessment. The results reaffirm prior research that suggested that the involvement of the recipient governments has a negative impact on project performance and that the participation of the beneficiaries has a positive impact on the projects performance. This study adopted "financial contributions" as the variable to analyze the participation of the recipient governments and the beneficiaries; since it utilized IFAD data, the research focuses on the agriculture sector in terms of international development cooperation. The applicability of these findings in other areas of international development cooperation therefore to be tested in future research.