Shifting Away from Financial Aid Responsibly and Sustainably
Evidence on strategies that have worked in ensuring a shift from financial aid support to governments to technical assistance alternatives
Abstract
This report reviews global evidence on strategies or approaches that have worked in ensuring a responsible and sustainable shift from provision of financial aid support to governments to technical assistance alternatives. The narrative is raised due to many donors are rethinking aid delivery away from the provision of direct financial aid through modalities like General Budget Support (GBS). Several trends are contributing to this reassessment. The world has become more complex and more diverse in the last decade, with a wave of countries graduating from aid, and several countries once considered developing countries now becoming donors themselves. This report is not concerned with establishing whether interrupting financial aid is appropriate. Instead, based on an awareness that there is a trend towards reducing or ending financial aid, or substituting financial aid for other forms of cooperation, the report reflects on the potential risks and issues around aid exit, transition, or transformation and presents some of the lessons learned to support appropriate and responsible shifts.
K4D helpdesk reports provide summaries of current research, evidence and lessons learned. This report was commissioned by the UK Department for International Development.
Citation
Gioacchino, G. (2018). Shifting away from financial aid responsibly and sustainably. K4D Helpdesk Report. Brighton, UK: Institute of Development Studies
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