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Institutional Change

What do discussions about aid modalities and institutional change have in common?

Heidi Tavakoli's picture

What do discussions about aid modalities and institutional change have in common?

A lot, very little, would you expect them to?  Clarifying these somewhat nebulous terms may be a first step to address this question.
 
An aid modality (or aid instrument), describes a way of delivering ODA.  Different modalities are defined according to how funds are managed and disbursed: Is the funding ‘on budget’? Who signs off on the funding releases? The concept says nothing about the content of a given aid programme; it is purely concerned with the process used to transfer the funds. While budget support and project aid are the most common types of aid modality, the term also encompasses a host of other funding mechanisms, including funding for skills transfer.