ABSTRACT
This chapter summarizes the nature of the aid process as it operates, and demonstrate the extent to which the ‘rules of the game’ are determined by the aid donors. It considers what the aid process could or should be like. The total volume of aid to be provided is decided by the governments of the donor countries. Their decisions will be influenced mainly by the current state of the economy, the international climate of opinion amongst donors, and the relative power of the ministerresponsible for aid. Donor countries must decide not only how much each country should receive, but also how much to allocate to multilateral agencies. The chapter discusses the inter-country allocation of funds by the multilateral agencies. With regard to the implementation of a project, practice varies considerably according to the nature of the scheme and the donor agency.
