Strengthening the Effectiveness of Aid

Book excerpt: Annotation The World Bank and international donor agencies invest substantial resources and effort in development. A continuing challenge is to ensure that assistance is provided and used as effectively as possible. This book surveys recent findings on the effectiveness of aid and the steps the Bank and other development institutions are taking to assess and improve their operations. It examines 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. The study concludes that five conditions are essential for aid to be effective: - 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 - Improvements in aid agencies' own business practices.