Aid instruments & aid effectiveness

This topic guide aims to provide introductory information on aid instruments and aid effectiveness, focusing on government-to-government aid. Since the late 1990s, new aid instruments, such as SWAps and budget support, have been developed to overcome the shortcomings of both projects and structural adjustment lending in supporting poverty reduction. Common to these new approaches is a focus on trying to build national ownership of poverty reduction policies, and an attempt to create a government-led partnership among aid donors and other stakeholders. To this end, they prioritise the use of recipient government systems of policy-making and public financial management and accountability, to enhance partnership and increase national ownership.

This topic guide was prepared by Elinor Wakefield. The GSDRC appreciates the contributions of David Booth, of the Overseas Development Institute in London. Comments, questions or documents for consideration should be sent to Huma Haider.

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