Aid effectiveness

Aid effectiveness is the extent to which development assistance achieves intended results and supports lasting development. It concerns the quality of aid relationships, delivery, and outcomes, not simply the amount of money spent.

Paris Declaration on Aid Effectiveness: A 2005 international agreement setting principles and measurable commitments for improving development aid. Its five principles provide the clearest framework for how aid is meant to become more effective.
Monterrey Consensus: A 2002 United Nations agreement on financing for development, including commitments concerning aid. It helped establish the international agenda that led to later aid-effectiveness agreements.
Official development assistance: Government-provided assistance intended to promote the economic development and welfare of eligible countries. Aid effectiveness concerns what assistance achieves, while ODA classifies and measures aid flows.
Aid fragmentation: The dispersion of aid across many donors, projects, or administrative channels in a recipient country. Fragmentation exposes the coordination costs that harmonisation commitments seek to reduce.
Ownership (development cooperation): The principle that partner countries lead their own development priorities and policies. Aid is more likely to fit local priorities when recipient governments set the agenda.
Rome Declaration on Harmonisation: A 2003 agreement in which donors and partner countries committed to harmonising aid practices. It marked an early coordinated effort to reduce the costs of fragmented donor procedures.
Aid dependency: A condition in which governments or institutions rely heavily on external aid to sustain core functions. Effective aid should support lasting capacity rather than entrench reliance on outside funding.
Country ownership: The degree to which a country directs its development policies and priorities. The effectiveness agenda made national leadership a standard against which aid relationships are judged.
Aid alignment: The practice of directing assistance toward partner countries’ strategies, institutions, and systems. Alignment tests whether donors support country priorities instead of imposing separate plans.
Accra Agenda for Action: A 2008 agreement that reaffirmed the Paris principles and broadened participation in aid reform. It extended the aid-effectiveness agenda toward inclusion, transparency, and stronger country ownership.

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