Glut of aid agencies is hindering efforts to reduce poverty and poor health

A proliferation of aid agencies, donors, and projects is fragmenting the global aid system, increasing transaction costs, and weakening efforts to reduce poverty and poor health, says a report from the United Nations.

The report says that the amount of official development assistance allocated to social infrastructure and services has increased in the past 30 years from an average of 21% in 1970-9 to 34% in 2000-8. However, this increase has not necessarily ushered in more aid. On the contrary, over the past decade the average size of aid projects declined by two thirds while the number of projects increased sixfold globally, says the report.

It concludes that aid …