Foreign aid from official sources to developing countries (excluding private aid) amounted to $103.6 billion in 2006 and has amounted to over $2.3 trillion (measured in 2006 dollars) over the past 50 years. There have been fierce debates over how effective this aid has been or could be in the...

This paper does not address the issue of aid effectiveness - that is, the extent to which aid dollars actually achieve their goals - but instead focuses on best practices in the way in which official aid is given, an important component of wider debate. First, we discuss best practice for an...