Editing Aid effectiveness (section)

=== Improving the economic efficiency of aid ===
Currently, donor institutions make proposals for aid packages to recipient countries.  The recipient countries then make a plan for how to use the aid based on how much money has been given to them.  Alternatively, [[Non-governmental organizations|NGO]]'s receive funding from private sources or the government and then implement plans to address their specific issues. According to Sachs, in the view of some scholars, this system is inherently ineffective.<ref name="Sachs" />

According to Sachs, we should redefine how we think of aid.  The first step should be to learn what developing countries hope to accomplish and how much money they need to accomplish those goals.  Goals should be made with the [[Millennium Development Goals]] in mind for these furnish real metrics for providing basic needs.  The "actual transfer of funds must be based on rigorous, country-specific plans that are developed through open and consultative processes, backed by [[good governance]] in the recipient countries, as well as careful planning and evaluation."<ref name="Sachs" />

Possibilities are also emerging as some developing countries are experiencing rapid economic growth, they are able to provide their own expertise gained from their recent transition. This knowledge transfer can be seen in donors, such as Brazil, whose $1 billion in aid outstrips that of many traditional donors.<ref name="ODI1">{{Cite web |author1=Lidia Cabral |author2=Julia Weinstock |date=October 2010 |title=Brazil: an emerging aid player |url=https://www.odi.org/publications/5120-brazil-emerging-aid-player |access-date=28 May 2018 |website=ODI |language=en}}</ref> Brazil provides most of its aid in the form of technical expertise and knowledge transfers.<ref name="ODI1" /> This has been described by some observers as a 'global model in waiting'.<ref>{{Cite news |last=Cabral |first=Lidia |date=21 July 2010 |title=Brazil's development cooperation with the South: a global model in waiting |url=https://www.odi.org/comment/4952-brazils-development-cooperation-south-global-model-waiting |access-date=28 May 2018 |work=ODI |language=en}}</ref>