Strengthening the Effectiveness of Aid: Lessons for Donors

A continuing challenge in investing substantial resources and effort in development, is to make sure that assistance is provided and used as effectively as possible. This book surveys recent findings on the effectiveness of aid and the steps the World Bank and other development institutions are taking to assess and improve their operations. It looks at specific methods for achieving better coordination within programs and among donors and brings together recommendations on how countries and agencies can improve the administration of aid. A primary conclusion is that, for aid to be effective, five conditions are essential: ownership by the government and participation by the affected people; strong administrative and institutional capacity; sound policies and good public sector management; close coordination by donors; and improvements in aid agencies' own business practices. While realistically taking into account political and economic constraints, the book outlines principles and workable measures that could yield more effective aid programs. The outcome would be a fuller contribution of aid to the fundamental goals of development: poverty reduction and an improved quality of life.