That appears to be the message from Dirk Niebel, Germany’s Development Cooperation Minister. General Budget Support is donor aid that goes straight to treasury without any earmarks to support the overall budget.
Niebel was in town to discuss German aid to Tanzania. He’s reportedly sceptical about GBS and wants more earmarked, project based aid for decentralisation, water, health and HIV and AIDS. Maybe Finance Minister Mkulo did a first rate job in convincing him of its benefits as German GBS support will remain at existing levels. Or maybe Niebel is not comfortable in being a first mover in backing away from GBS, but wants to get some things off his chest anyway.
Mkulo was forthright in the assurances he gave:
Mr Mkulo said at a press conference that Tanzania will use every penny wisely and for the intended purpose, assuring that every single cent from the German taxpayers will be accounted for.
That’s ambitious, given that last year President Kikwete told us that 30 percent of the government budget is lost to corruption.
For a couple of years now, aid modalities have been getting a lot of play in the niche world of aid blogging. But any modality is bound to come a cropper when faced with such cognitive dissonance – on the part of both giver and receiver.