ABSTRACT
This chapter examines the problems created by poorly targeted aid design, corruption and waste in allocation, and misguided and often arbitrary project oversight. Regimes with foresight and interest in modern democratic governance recognize the devastating consequences of leaving some of its regions behind through neglected service coverage and scarce provision of transfers and subsidies. The economic rationale for aid to poor countries has long been the provision of capital or funds to treasuries unable to finance their own programs and projects. Perennial political economy critiques of aid have come from the left and right and are well known. The rationale for aid devolution is based on the tested premise of learning by doing. Capacity is not built by supply of skills that are often unused. Skills are learned by creating an immediate demand for them which is what administration of overseas aid would do for country officials.
