chapter  4
14 Pages

Aid Policy Failings: Bringing in Relational Accountability

Aid can play a key role in both fiscal sustainability and the delivery of public services through increasing financial flows to support a rise in investment and consumption expenditure. It can also bring important advisory support and capacity enhancement through technical assistance and sometimes policy dialogue. Alongside these benefits, though, the dependency and capacity impact that accompanies aid inflows has important, and frequently negative, implications for the recipient government. This relates to the conditionalities associated with aid and power relations.