ABSTRACT
This chapter explores recent trends in the international community’s view of how aid can be most effective, particularly as articulated and implemented by the World Bank, and evaluates aspects of Japan’s aid program. It shows that one of the essential components of the international development community’s strategy for improving aid effectiveness is to put much more responsibility on the recipient country for managing aid. It would seem that Japan is in line with the international community and the World Bank in terms of aid philosophy. The World Bank provided its latest thinking about aid delivery in its World Development Report 2000/2001 on poverty. The World Bank’s procurement and disbursement regulations on investment loans prevent the mixing of World Bank money with other donor and government money. The final recommendation in the World Development Report 2000/2001 with regard to aid effectiveness is that donors pay more attention to policy environment in which they are giving aid.
