New approaches to reforming the international aid system

Aid is not the most important determinant of how quickly a country develops, but it can contribute both to accelerating development and improving the lives of poor people.  There are mounting concerns however that not enough is being done to ensure aid is used effectively for poverty reduction. Despite decades of commitment to change how aid is delivered, reform has been painfully slow. Declarations of intent have clearly not been sufficient to overcome the political and institutional incentives and constraints within which donors work. A key question, looking to the future, is this: are donors more likely to be able to change the constraints in which they have to operate, to become more effective within the existing system? 

This meeting explored new thinking on institutional incentives and constraints in the aid system - the political economy of aid. Owen Barder (Development Initiatives) presented his new paper titled `Markets, Networks and Planning for more Effective Aid` which suggests a combination of institutional changes, drawing on markets, networks and planning to implement a new aid reform agenda. A discussion panel of international experts chaired by Alison Evans, Director of ODI, contributed thinking on underlying principles and set the scene for wider discussion.