Aid to eastern Europe is designed specifically for macroeconomic stabilization and projects in infrastructure, nuclear weaponsandnuclearwaste disposal, improvement of theenvironment, training, transfer of technologyandacquisition of know-howrelated to the functioningof democratic institutions, market economies and administrative systems. Most of these aid programmes are conditional upon adoption of far reaching economic and political reforms. Unfortunately, the donor countries lack coherent strategy and political will to devote substantial resources to the goal of stabilization of eastern Europe. Western aid is often considered in eastern Europe as overly cautions and overdue. Ethnic conflicts, the depth of economic decline and the sheer size of this region contribute to the confusion and shortsightedness of aid policies. Western aid is unlikely to make any significant impact on the process of reforms and stabilization of eastern Europe if it is to continue unmodified.