Understanding Contemporary Aid Relationships

Abstract

Abstract Chapter 2 showed how aid donors worked through the 1980s to develop a conditionality regime designed to influence the economic policies of aid receiving countries. Through the 1990s, donors broadened the range of policy issues covered by conditionality and sought to close loopholes in the implementation phase exploited by aid recipients, introducing tranches and benchmarks into the loan negotiation and tying more bilateral aid to World Bank and IMF approval. It came as something of a surprise then when donors started to argue in the late 1990s that they did not want their relations with recipients to be understood in terms of conditionality.

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