Perspectives on Budget Support: Why and How we are Delivering

“Few aid instruments have caused such vigorous political debate as budget support in discussions on how aid can best be delivered.” Thus opens Ingrid-Gabriela Hoven the second contribution to the Discussion Platform in which donors and key developing partners are invited to present their views on the use of budget support. Lux-Development was the first to contribute (March 2009) to this platform, which ECDPM launched in order to contribute to the debate on aid and development effectiveness, and the related discussions on the choice and mix of aid modalities. Although donors remain free to choose their preferred aid modality, they also have committed to progressively use partner country systems. Some donors have opted for budget support as the best modality to fit this purpose. Others disagree. And in general, there are varying degrees of reluctance to shift to this aid modality in a meaningful way. This contribution clearly argues why “Germany stands behind and promotes budget support as an aid modality”.

Read Discussion Paper 88A