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Submitted by Shanta on

Zahid: Transformative public assets will be built only if there is a political consensus within the country that such assets should be built (and resources redirected from other uses towards these assets). Aid cannot create this political consensus (indeed, it may undermine it, by pushing a project that is one of the donor's "favorites" even if there is no domestic consensus for it). Once such a consensus has been reached, aid can help relax the financing constraint (if there is one), but remember that money is fungible, so aid may simply be financing other expenditures of the government even if it is directed at the transformative project. Shanta