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New aid approaches devised under the Paris/Accra agenda for more effective aid are expected to make a particular difference in health and education as, arguably, in these sectors aid fragmentation is particularly prevalent. This article reviews evidence from recent in-depth country work on the extent to which the harmonisation and alignment principles, implemented through new aid modalities, have contributed to health and education outcomes in Zambia. Evidence suggests that even in a 'model' case for adopting Paris-style aid instruments such as Zambia, implementation of good aid principles has been insufficient to overcome the negative side effects of uncoordinated and fragmented aid.

The 'right' choice of instruments and modalities to provide aid to developing countries in support of poverty reduction and economic development is arguably the most contested issue in the current international debate on aid effectiveness. A particular controversy exists around the provision of aid in the form of budget support to avoid high transaction costs and other shortcomings of traditional project-based aid. Critics argue that this kind of 'programme aid' involves unacceptably high fiduciary risks due to the fungibility of budgetary funds. A more recently proposed form of aid is in the form of results-based aid or aid on delivery. Proponents argue that this provides donors with better control over the use of aid resources. …/

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