Aid effectiveness

Aid effectiveness is the effectiveness of development aid in achieving economic or human development (or development targets). Following the Cold War in the late 1990s, donor governments and aid agencies began to realize that their many different approaches and requirements for conditioning aid were imposing huge costs on developing countries and making aid less effective. They began working with each other, and with developing countries, to harmonize their work to improve its effect. Aid agencies are always looking for new ways to improve aid effectiveness, including conditionality, capacity building and support for improved governance. Aid effectiveness is the effectiveness of development aid in achieving economic or human development (or development targets). Following the Cold War in the late 1990s, donor governments and aid agencies began to realize that their many different approaches and requirements for conditioning aid were imposing huge costs on developing countries and making aid less effective. They began working with each other, and with developing countries, to harmonize their work to improve its effect. Aid agencies are always looking for new ways to improve aid effectiveness, including conditionality, capacity building and support for improved governance.