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Development Impact of Counterpart Funds: A Review of the Literature

机译：对口基金的发展影响：文献综述

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The paper surveys and evaluates the literature on the development impact ofcounterpart funds. Counterpart funds are defined as the local currency generated by the sale of commodity aid, including food aid, or cash aid in foreign exchange, over whose use the donor has some control. The paper concludes that the nature and value of the counterpart fund differs depending on the country situation. In some country situations this approach offers numerous opportunities for making aid more effective than it would otherwise be, while in others, the counterpart fund approach associated with commodity and cash aid serves no useful purpose and can indeed create significant costs for both donor and recipient. These conclusions have two important policy implications. In the first place, they mean that it is impossible, and indeed undesirable, to draw up hard-and-fast rules that apply in all countries, under all conditions. The second implication is more demanding. For counterpart funds to be effective, USAID mission staff in the recipient country must have a through knowledge not only of the way the aid receiving economy works but also of the institutional, political, and cultural aspects of the society in order to identify any ways in which counterpart funds could be exploited.

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