Aid can work

To date, attacks on aid effectiveness have become a growth industry. Between the disbursement of foreign aid and eventual development outcomes, there is a long causality chain. The chain has three main links that shed light on what is known about aid effectiveness. First is the link between country policies and final outcomes. The second is the ability of policymakers to make appropriate policy choices given existing knowledge. The third is between external donors or aid agencies and policymakers or even policies. These links can be monitored, although imperfectly.