The directory of development organizations, listing 70,000 development organizations, has been prepared to facilitate international cooperation and knowledge sharing in development work, both among civil society organizations, academic and research institutions, governments and the private sector.

This paper analyzes optimal foreign aid policy in a neoclassical frameworkwith a conflict of interest between the donor and the recipient government.Aid conditionality is modelled as a limited enforceable contract. We defineconditional aid policy to be self-enforcing if, at any point in time,...