What determines the suspension of budget support in Sub-Saharan Africa?

Abstract

Since the turn of the millennium the aid business has witnessed an important shift in the conceptualization and practice of aid delivery. The move towards harmonized and aligned approaches, including the need to make aid more predictable and flexible, introduced the budget support modality. Budget support (BS) was designed as a financing modality to support poverty reduction efforts, which was to be used quite selectively. Only countries with a good policy environment and a government demonstrably committed to poverty reduction were to be granted this flexible aid modality. Ownership was considered key because experience had shown that conditionality, particularly the kind that refers to reforms or policy changes which carry some political sensitiveness, tend to be ineffective.

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