International Development and Development Cooperation : Challenges Ahead

It is likely that the international aid system will continue to evolve along one major axis in the years to come, with a fragmented, foreign-policy focus at one end, and a more deliberate poverty focus at the other. This follows from the increasing securitisation of aid that, particularly after the events of 9/11, is likely to shift aid distribution away from where it may have the largest impact on poverty. While the current (post-Washington) consensus on aid stresses the importance of good governance for aid effectiveness, the restrictive approach to aid in conflict-prone and conflict-ridden countries will have to be revisited. Also, a major unresolved issue is how best to support poor countries which perform poorly, especially failing states.