ABSTRACT

The flow of funds from one state to another for the purpose of improving development outcomes is a core component of the international development project. The current model of delivering development assistance across state boundaries is directly linked to the successful rebuilding of the devasted European economies following the Second World War. As a primary source of funding supporting development, its use is as political as it is economic and social. This chapter will seek to describe the changing nature over time of development assistance in both its approach to its allocation and delivery and the total volume of aid and the evolution of who these donors are. This chapter will also review how aid has been delivered and the international compacts that have influenced these changes – especially since the turn of this current century. Determining whether it has proven successful in achieving its stated development goals is fundamental to appreciating its history. The recent expansion of donors has also impacted how development assistance is provided and received and impacted the agency of recipient countries. Finally, the emergence of alternative donors will be described along with the impact this is having on the relationships between aid donors and recipients.