Aiding local action: the constraints faced by donor agencies in supporting effective, pro-poor initiatives on the ground

This paper examines the institutional and political constraints that
inhibit multilateral and bilateral donor agencies supporting poverty reduction
initiatives on the ground. These include the constraints related to their own structures
and the political systems in which they are embedded, and those related to
their relationships with recipient governments. The paper also considers how
current trends in development assistance towards greater donor harmonization
and the associated processes within Poverty Reduction Strategy Papers (PRSPs), the
shift from project support to budget support, and the drive for greater “efficiency”
may further limit donors’ capacity to support pro-poor local initiatives. It also
discusses how these trends in development assistance are marginalizing support
for those aspects of development that require relatively little external funding but
also require that this funding be used carefully and strategically, engaging directly
with poor groups and their organizations, and enlarging their scope for influence

This paper is very relevant to our ongoing project  "Development Aid Support Mechanism" See more at: http://developmentaidsupport.org/ or http://capacity4dev.ec.europa.eu/aid-support