Aid Effectiveness : Research, Policy and Unresolved Issues

This paper provides a critical review of the recent research on aid effectiveness. It argues that there is an enormous disjunction between research on aid effectiveness and current policies and practices: in particular, recent empirical research efforts have spawned a large body of work that is rife with controversies and insiders' drama, but sheds little light on important policy issues regarding allocation, design and delivery of foreign aid. The paper argues that a convergence of the two universes – research and policies – is essential both for a sophisticated understanding of the underlying issues and for formulating appropriate policies and practices for aid effectiveness