Why is aid received?

The chapter addresses the dynamics of recipient countries in terms of changing policy reforms and mechanisms for improving capacity for deciding on accepting aid, managing aid and advancing desire for greater ownership in the aid relationship. The implications of framing future aid strategies are examined bringing out features of capability of managing aid and commitment to using it properly consistent with the reasons for receiving aid. Whether aid will continue to be received and to what extent is an open question that needs to be addressed. The evolution of the conceptualization and justification for receiving aid has reflected changes in development theory and policy, existing data systems and change in the world economic environment. In this context the chapter will examine the implications of going beyond filling the gaps in the budgets towards debt management, aid delivery modalities, better institutions, and greater participation of recipient countries.