The Seven Habits of Effective Aid: Best Practices, Challenges and Open Questions

This paper looks at the challenges associated with achieving best practices for aid effectiveness that leaders will discuss at the ‘High-Level Forum on Harmonisation and Alignment for Aid Effectiveness’ to be held in Paris at the end of February, 2005. According to the report, the ‘seven habits of effective aid’ towards which formal commitments are in place, but which deserve to be clarified, reconfirmed and strengthened are: 1) aligning financing on partner country priorities; 2) improving aid predictability; 3) relying on country systems; 4) increasing donor complementarity; 5) intensifying and incentivising joint action; 6) ensuring mutual accountability; and 7) strengthening systemic capacity. Each of these seven elements is briefly discussed.