Exploring institutional arrangements in multi-stakeholder programmes : a case of a South African National Government Department

Abstract: South Africa is a recipient of Overseas Development Assistance (ODA) from a number of donors. However, challenges and issues surround the coordination, management, effective implementation, and impact of ODA. Some of these emanate from the institutional arrangements put in place by the stakeholders. Donors and the South African government utilise contrasting institutional arrangements. This research study adopts a qualitative approach to examine institutional arrangements at a multi-stakeholder programme based at the Department of Small Business Development. The theoretical framework employed to interpret the findings is Transaction Cost Economics (TCE). In the academic field of Sociology, the purpose of TCE is to explain norms, institutions, group formation, social organisation, and other products of collective action drawing on elementary principles. The study found that managing contrasting donor procedures and meeting numerous donor requirements take up a large proportion of recipient countries’ administrative capacity, thus increasing aid transaction costs. It recommends that, in order to reduce excessive ODA administrative burdens and transaction costs, the South African government should consider crafting an overarching ODA Act to govern ODA institutional arrangements.M.A. (Social Impact Assessment (CW)