Perspectives on Budget Support Who’s afraid of Budget Support?
In Paris (2005) and in Accra (2008) developing countries and development partners jointly committed to improve the effectiveness of aid. Despite the strong consensus on key principles for improved aid, numerous unresolved issues remain. One such outstanding issue is 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 paper is part of a series of discussion papers in which donors and key developing partners are invited to present their views on the use of budget support. It is hoped that this discussion platform provides a learning opportunity on the relationship between aid modalities and the implementation of the Paris and Accra agendas.
Read Discussion Paper 88