Smart Aid: Things That Work

ABSTRACT

The debate about reinventing foreign aid has gone beyond affirming that foreign aid works or does not work. The history of aid  has been a mixed one: some have worked  in certain  contexts,  and some have not worked. This essay explores what type of aid has worked and what has not. Under what conditions  can aid work effectively, and what type of aid, and how can we make aid effective and what type of actors can make aid effective ?

Aid has worked when it is targeted, specific, driven by the  objective to raise the quality of life of people.  Aid works and is effective when it is seen as one of the tools in financing development and can enhance growth and sustainable development.

The actors in making aid effective are a combination of states, civil society, market and private sector and the international community . It is not an either or but holding all in creative tension.

Aid has worked in improving human capital, especially health and education.  Research in health  is a priority that works especially around infectious diseases affecting poorer countries.  Aid financing on technology, science and entrepreneurship works and improves growth and sustainability.

 Aid does not work when it absorbs local and national initiatives. It does not work when it is used for recurrent expenditure and not capital. It can support benevolent dictators but would not be sustainable in the future.