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Development agencies increasingly provide financial support to macro-level policies and to government budgets to assist the recipient through a programme of policy and institutional reform and implementation that promote growth and achieve sustainable reductions in poverty.

Direct Budget Support Agreements are the formal DBS instruments negotiated between the development agency and recipient government.

The support may include a mix of general budget support and policy and institutional actions (including economy-wide reforms such as tax reforms, privatisation, decentralisation and trade liberalisation).

Source Publication:
OECD, 2006, DAC Guidelines and Reference Series Applying Strategic Environmental Assessment: Good Practice Guidance for Development Co-operation, OECD, Paris.

Statistical Theme: Financial statistics - Financial flows to aid recipients

Created on Monday, July 23, 2007

Last updated on Thursday, July 26, 2007