So you think you know what drives disbursements at the IDB? Think, think again...

This paper focuses on the performance of IDB projects between 1996 and 2011 disbursements. We present evidence on the evolution of disbursements with respect to the available funds and the evolution of disbursements with respect to the historic disbursement curve of IDB projects. We also identify the main factors driving disbursements. Our findings show that disbursements improved in the last 10 years; in particular, they improved after the organizational changes instituted after 2006. With respect to the factors driving disbursements, we find that: (i) Country is more important than sector in understanding performance. (ii) Most of the remaining variance in project performance can be explained by variance within each country. (iii) The team leader plays an important role in understanding project performance. (iv) The effect of team leader location on disbursement performance has not been constant over time. The effect is negative for projects approved after 1996. However, if we focus on projects approved after 2009 the effect is positive. This result also provides evidence on the success of the organizational changes undertaken after 2006. (v) Projects that underwent a change in team leader show an improvement in performance after one year of the change. (vi) Team leader characteristics related to the experience or seniority of the team leader are non-significant, though in the expected direction. Team leader may be pointing to other non-observable characteristics of the individual or characteristics of the larger team that supports that team leader in execution and supervision of the project.The effect of team leader location on disbursement performance has not been constant over time. The effect is negative for projects approved after 1996. However, if we focus on projects approved after 2009 the effect is positive. This result also provides evidence on the success of the organizational changes undertaken after 2006. (v) Projects that underwent a change in team leader show an improvement in performance after one year of the change. (vi) Team leader characteristics related to the experience or seniority of the team leader are non-significant, though in the expected direction. Team leader may be pointing to other non-observable characteristics of the individual or characteristics of the larger team that supports that team leader in execution and supervision of the project.