How public resources are governed is a hot public policy debate. Emphasis is growing as steps are taken to increase aid money and extend debt relief. The World Bank uses a complicated scorecard of governance indicators to help determine how money should be allocated. Many European donors are also increasingly using aid money to try and leverage governance changes.

There are often huge discrepancies between donor “good governance” policies and what works in a particular context. There is a danger that one size fits all “good governance” policies are pushed on developing countries while important questions remain about attempts to leverage change from the outside and mandates to do so. Rich countries have much to do to ensure they do not facilitate leaks in the system through practices such as tax havens.

Eurodad’s work in this area includes monitoring multilateral and bilateral implementation of the “good governance” agenda; promoting debate amongst Eurodad members and other networks on responsible lending principles and procedures; improving common understanding of the importance of external agencies in facilitating and not undermining democratic accountability processes in aid-recipient countries.