4.5 Selecting and combining aid modalities
The design of EU support should not begin by choosing an aid modality!
The appropriate selection of aid modalities can only be tackled once the strategic choices have been made on outcomes, entry points and actors. Some key questions need to be answered before
EU delegations have to be strategic and pragmatic when choosing relevant aid modalities to carry out DLGTD operations because:
-
effective support to DLGTD goes beyond channelling financial resources;
-
the use of a single aid modality has proven highly problematic.
This is particularly true when using budget support which is considered the preferred aid modality and for which experience has shown the following limitations:
-
policy dialogue and disbursement conditionalities associated with budget support operations tend to focus on implementation issues related to the use of the funds;
-
capacity development inputs that come with budget support operations tend to focus on fiduciary risks and public financial management reform;
-
funds can remain trapped at the central level.
Depending on the context and the intended objectives, different situations may prevail leading to different choice of aid modality:
|
To go further... read this
|