Improving effectiveness of foreign aid

Description

Improving the effectiveness of foreign aid involves aligning assistance with recipient needs, enhancing transparency, and ensuring accountability in allocation and delivery. This strategy prioritizes measurable outcomes, local capacity-building, and coordination among donors to reduce duplication and inefficiency. By focusing on evidence-based interventions and fostering recipient ownership, it addresses issues such as aid dependency, mismanagement, and resource wastage, ultimately maximizing the positive impact of aid on sustainable development and poverty reduction.

Context

As a result of economic difficulties in developing countries and the budgetary constraints of donors, attention has been focused on increasing the effectiveness of official aid. The response of donors has been to put greater emphasis on policy reform in recipient countries, to develop flexible instruments to meet the specific needs of recipients and to coordinate their assistance programmes more closely.