The business of aid: Transparency and accountability in European union development assistance

The European Union has emerged as one of the world's largest aid donors. However, its multilateral aid programme, while well-placed to set a new standard in development assistance, suffers from problems of democratic accountability confronting all transnational actors in an increasingly global community. Examination of the rules governing the European Commission's aid programme to Asian and Latin American countries reveals a pattern of perverse incentives facing private consultants and a lack of access to information that makes the programme virtually unaccountable to both European taxpayers and citizens in recipient countries. Case material from the Philippines illustrates the problems in the Commission's aid programme. Proposals for reform are presented that are both politically feasible and capable of making the programme significantly more transparent and accountable.