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The emerging aid architecture: PRSs and the MDGs

Review of aid requirements, availabilities and policies in Africa

Authors: R. Liebenthal; S. Wangwe
Publisher: UN Economic Commission for Africa , 2006

This background paper published by the Economic Commission for Africa, sets out the facts about aid to Africa and reviews the estimates of aid requirements and availabilities. The paper also discusses aid modalities, with a particular focus on budget support and mutual accountability, and aid policies for African countries. It finds that there is a need for policies to address issues of aid effectiveness and quality more comprehensively. It is important for African countries to develop policies which address: aid dependence and exit strategy; the preference for particular aid instruments; the preferred approach to capacity; the number of donors and their comparative advantage.

The paper concludes with recommendations for countries to improve aid effectiveness, influence aid delivery and build aid into development plans. It recommends that African governments should:

  • continue to strengthen national planning, budgeting and financial systems, with a special focus on poverty reduction
  • continue pressing to increase the share of aid in the form of budget and sector support
  • establish mutual accountability frameworks at the national level
  • develop explicit aid policies and consider embodying selected aspects in legislation