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Building stronger health systems and sectors in low-income countries will continue to require international finance for some time to come. However, despite the significant growth in development assistance to health in recent years, fundamental challenges remain; both to raise the finance required and to ensure funds are spent effectively. This chapter examines the experiences, emerging evidence, and lessons learned that are influencing the way in which the international community funds health-related development in low- and middle-income countries. It outlines the pattern of aid flows to low- and middle-income countries in recent years. It then presents and discusses concerns and evidence relating to aid effectiveness in the health sector, focusing on health sector development. Finally, it discusses the policy response and examines the way ahead.
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