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Monday, 09 November 2009

A new EC report unveils the costs of aid ineffectiveness

Three to six billion Euros of European ODA is wasted each year due to the lack of implementation of existing aid effectiveness commitments. This is the main finding of the new report “Aid Effectiveness Agenda. Benefits of a European Approach” which has been released by the European Commission at the European Development Days in Stockholm. The report investigates the costs of five dimensions of aid ineffectiveness: the lack of division of labour, tied aid, volatility and unpredictability, and finally the cost incurred when recipient country public financial systems are not used and government ownership is weak.

Source: Eurodad