Aid Effectiveness

What is Aid Effectiveness?

Aid has long been provided by governments in the North to developing countries in the South for a variety of reasons and with varying degrees of success.

Despite its problems, it is clear that when aid works, it works well: good aid can contribute to the broader development process, by being targeted at the problems facing the poorest and most vulnerable, by challenging inequality, and by supporting the empowerment of those whose rights are limited and denied.

When aid is provided with objectives other than those in mind can be harmful rather than beneficial. Aid driven by external concerns can interfere with internal decision making processes, close up valuable policy space and lead developing countries down harmful economic paths. And yet, the international aid system is characterised by power imbalances, and misplaced incentives, giving unfair advantage to donor-driven interests and placing the aid recipient in a position of weakness, largely to the detriment of the poor.

It is for these reasons that Aid effectiveness is one of the key concerns of organisations acting in Development cooperation.

CONCORD states that aid cannot be effective unless:

“it contributes to reductions in poverty and inequality and helps developing countries meet internationally agreed human rights standards. Given that 70% of those living in poverty are women and girls, effective aid must always actively tackle gender equality and women’s rights issues. As poverty is unevenly distributed and inequality is widespread both within and between countries, effective aid must also pay special attention to the poorest and most marginalised groups.”

The debate on Aid Effectiveness today is framed by the Paris Declaration on Aid Effectiveness.