ABSTRACT
This chapter looks at several countries that have sought to inform resource allocation decisions with a clear view of the role of the state and to introduce a medium-term expenditure framework that integrates donors within the budget framework. It examines experience with sectorwide approaches to coordinating government and donor efforts under the leadership of government. These approaches are not equally feasible or relevant in all countries. The chapter deals with a framework for adapting program aid to country circumstances and for making public expenditure more responsive to poverty reduction. The medium-term expenditure framework and sectorwide approaches are two new instruments in development cooperation that focus on donor-government partnership in the budget process. Both government and donor efforts need to be set in the context of a clear vision of the roles of the state, the private sector, nongovernmental organizations, and civil society.
