The Reform of Aid Aid is capable of promoting economic growth in Africa. To do so, however, the capacity of African states to manage aid resources has to improve. This entails making sure that aid is better integrated into the government's overall development planning and budgeting. The needs of the population and the capacity of recipient governments to use aid resources effectively should determine the flow of resources that each country receives. The ability of African governments to manage aid resources more effectively should be enhanced so that aid can promote growth and poverty alleviation.
Economic stabilization is a critical prerequisite for effectiveness.
As long as African countries remain in fiscal disequilibria, their governments will not be able to undertake long-term planning and institution building. Aid resources can and should be used to help governments stabilize their economies, but only if the government is fully committed to stabilization. A number of measures should be undertaken to lessen the managerial burden of aid on governments. First, recipient governments should coordinate aid resources, rather than allow donors to dominate the process. To facilitate this, donors should specialize in specific sectors, reduce the number of projects, and streamline and simplify their programs and procedures.