ABSTRACT
What has been the direct impact of the SEK 7 billion of Swedish programme aid, and the many billions more of PA from other donors? That is, what have the funds been used for? This question may be addressed at both the micro and macro levels. At the micro level one can try to trace the use of funds. However, doing so is a useless exercise in the case of PA. The documented ‘use’ of the funds is often an accounting fiction, especially as systems became more liberalised – this is aside from the issue of fungibility. The use of PA funds can only be meaningfully addressed at the macroeconomic level. For example, how has the level and composition of imports been affected by the receipt of PA? 1
