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Forum for the Future of Aid

Southern Voices for Change in the International Aid System Project

The Forum on the Future of Aid is an online community dedicated to research and opinions about how the international aid system currently works and where it should go next

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Effects of Budget Support - A Discussion of Early Evidence

Source: SIDA

This report stops short of presenting any potential impacts from budget support on poverty reduction since it is assumed that budget support mainly contributes to poverty reduction by creating an environment where the recipient governments are able to pursue this strategy.

This is done through promotion in four areas:Growth; Improvement of Financial Management Systems, Strengthening of the Government through the Improvement of the Aid Management System and; an Improved Policy Environment. Even though budget support is not supposed to reduce poverty directly the way it goes about creating an enabling policy and institutional environment will have a great effect on the partner countries possibility to do so. The major question then, must be how to do that in the most efficient and effective way.

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