DIIS Policy Brief
What aid should and shouldnt do in order to support private sector development
Foreign aid needs to focus more on economic cooperation and productive structures
If foreign aid is to have a greater impact on reducing poverty in poor countries in a sustainable manner, then it needs to focus more on economic cooperation and changing productive structures, and to move away from a focus on social sectors and subsidizing the consumption of poor people.
What aid should and shouldn't do in order to support private sector development