Aid instruments
Overview
Aid instruments are the means by which donors provide resources (human, knowledge and financial) to developing countries, and influence policies and processes in favour of poverty reduction. The appropriate mix of aid instruments is not the same for all countries but will depend on the local and regional context.
Why is this important?
Different types of aid instrument have different benefits and drawbacks. It is important to choose the right instruments, and to tailor them to local needs, so that they have the best impact on poverty reduction in partner countries. Guidance is needed to make better informed decisions on the selection and use of different aid instruments.
DFID approach
DFID is reviewing and developing thinking on evidence, policy, best practice and guidance for key aid instruments, as well as on how to deploy different aid instruments in different contexts. Some work has already been conducted on different aid instruments. To access more information on some of the main aid instruments, click on the links below:
Last updated: 2 February 2006
