This book, based on the experience of the DAC Member countries, examines how to manage foreign aid programs to acheive the best results.

The member countries of OECD's Development Assistance Committee (DAC) give almost USD 70 billion in foreign aid (development co-operation) annually. This study examines how to manage that aid for the best results. It is based on the organisational structures and practices of 22 of the world's main donor countries, with a view to assisting countries who are becoming donors. The book covers issues such as legal frameworks; how donors organise their operations in partner developing countries; centralised versus decentralised management; relations with non-governmental organisations; and managing.

This book outlines what individual donor countries are doing to fulfill their development co-operation ambitions and their part of international agreements.

Following the first volume of good practices for effective aid delivery, this second volume focuses more specifically on good practice in providing budget support and support to sector-wide approaches.

The international community is committed to helping partner countries meet the Millennium Development Goal of halving global poverty by 2015. Effective use of scarce official development assistance is one important contribution to this end. This is why the development community, under the auspices of the OECD Development Assistance Committee (DAC), is dedicated to implementing improvements in aid practices that deliver more effective and harmonised support to the efforts of partner countries. The good practices presented here have been designed to respond to this concern. They represent a set of practical steps that – if applied by development agencies – should significantly improve the effectiveness of development assistance. Following the first volume of good practices published in 2003, this second volume focuses more specifically on good practice in providing budget support (Chapter 2) and support to sector-wide approaches (Chapter 3). In doing so, it acknowledges the special relevance of public financial management issues for both of these modalities of aid delivery. This is why the last chapter of this volume (Chapter 4) is devoted to setting out good practice in providing support to capacity development for public financial management. The chapters are complemented by a substantive annex that outlines a proposed approach to supporting improved public financial management performance. In the same collection: Volume 1: Harmonising Donor Practices for Effective Aid Delivery Volume 2: Harmonising Donor Practices for Effective Aid Delivery: Budget Support, Sector Wide Approaches and Capacity Development in Public Financial Management Volume 3: Harmonising Donor Practices for Effective Aid Delivery: Strengthening Procurement Capacities in Developing Countries The first volume in this collection on Harmonising Donor Practices for Effective Aid Delivery (ISBN 9264199829) was published in May 2003 without a volume number. Its success was such that a short collection of books (of which this is Volume 2) has been created.