Stephen Howes,
 Development Policy Centre, Jan 2011
 Crawford School of Economics and Government, Australian National University

Official Development Assistance has increased exponentially. Australian aid alone increased from 6% in 1967 to 25% in 2005. In similar way aid giving and receiving modalities and countries are changing in time. Aid receiving countries like Korea and China are now aid givers. Multiple donors in specialized sectors have increased with types like Technical assistance, humanitarian aid.

Does Aid help reducing poverty? The answer is difficult to define. There exists wide range of conflicting assumptions on aid effectiveness so are the determinants. Aid has several objectives and so effectiveness can be only analyzed regarding those targeted objectives. Aid has political interest objectives and undermines national priorities, which some critics claim important to aid actors. The paper is an assessment of aid effectiveness on fighting poverty among many objectives.

The paper argues on elements of existing systems, insights basic strategies for the remedy of maladies, with the general overview of Official Development assistance of other countries particularly focused , with Australian ODA historically for the better aid. Among the many determinants of Aid Effectiveness, the paper extrapolates three basics like the performance of recipient country and the developing partners and the co-relation between the partners. And thus demonstrates the efficiency of the managing development results in aid mechanism making strategic interventions on these three fields.