ABSTRACT

In this chapter we summarise our main conclusions and draw some lessons as to how programme aid can best contribute to development. Programme aid is the provision of aid that is not linked to projects. Usually, it is accompanied by conditions for policy changes. Donors often also set conditions for the use of the money and for reporting. The nature of these latter conditions depends on the modality of programme aid: IS, DR or BS. The effectiveness of the policy dialogue between donor and recipient, and the impact of the other conditions linked to programme aid are two of the central issues in this book. But goes ‘beyond conditionality’. First, we have also examined the impact of the programme aid funds on economic growth and poverty reduction. Second, we have explored the multiple channels for donor policy dialogue, which includes formal conditionality, but is much more than that. And, third, we examined the impact of the reforms themselves.