Making foreign aid more relevant

In 2003, the Ministry of Foreign Affairs of Denmark transferred the management of bilateral aid to Danish embassies in major partner countries. The initiative was taken partly to increase the effectiveness of Denmark’s development cooperation, partly to improve the conditions for “a real partnership with the recipient countries”.

The transfer of aid management to country representations is much in line with official international thinking as expressed by OECD’s Development Assistance Committee, and it resonates with suggestions in the literature to understand local conditions and establish “best fit”.

In a study published in Development Policy Review, Lars Engberg-Pedersen explores the Danish experience in detail and argues that the transfer of aid management also has unforeseen consequences.

Download the article here