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Budget support as an increasingly popular instrument of development cooperation enjoys broad optimism within the international community. This paper outlines not only definitions, underlying principles, facets, modes of implementation and experiences made so far, but critically analyses the various donor positions including the European Union, the international financial institutions and the OECD. The last chapter is a case study of the education sector in Burkina Faso demonstrating the contradictory implications of budget support on povertyrelated aspects of development.
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