Embrace the increasing competitiveness of the aid 'market' and use it to make the market work better. There is no reason that the agencies that set priorities and donate money need to be the agencies that use the money to deliver services. Should aid agencies 'make aid' or simply 'buy aid'? Since competition would probably be much more productive between service delivery organizations than between donor organizations, this split has some attractions. There are several ways in which it might happen...
This is from chapter two of The Market for Aid, and also available in this short note on Aid Agency Competition.
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