Introduction: Aid-effectiveness, Prisoners’ Dilemmas, and Country Allocation

In theory – and in project and country experience – aid has proved its potential to stimulate growth, and sometimes to reduce poverty. But the record has been worsening, for four reasons. First, donors’ self-interest impedes their attempts to help recipients to improve policy. Second, each donor (and each recipient ministry), in pursuing its own interests, damages the total performance of aid. Third, the recent shifts from project to programme aid require better support with manpower training, and subtler concepts of ‘policy dialogue’. Finally, the growing scandal of country aid allocations needs attention.