This paper sets out and explores the link between donor aid and recipient country budgets, and the role that greater transparency about aid can play in improving budget transparency, the quality of budgetary decisions, and accountability systems. The paper goes on to explore how current initiatives to improve aid transparency can best support better budgets and accountability in aid dependent countries. These efforts provide an important opportunity to enhance the effec-
tiveness of both the recipient governments’ own spending and the aid they receive from donors. Research related to this paper has been funded by the International Budget Partnership and Publish What You Fund, with the aim of informing and influencing the International Aid Transparency Initiative (IATI) – an ongoing process to build an international standard for aid information as a follow on from the resolutions in the Paris Declaration and the Accra Agenda for Action.

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http://www.odi.org.uk/resources/download/4673.pdf