The past fifteen years have witnessed a shift in development cooperation from a projectbased approach to a sector-wide approach (SWAp) and towards sector budget support and general budget support. These new instruments were a response to the perceived lack of efficiency, effectiveness and sustainability of directing aid towards specific projects. It was believed that the failure of this approach had been caused by fragmentation, a lack of coordination and a weak sense of ‘ownership’. Stakeholders on both sides of the aid relationship felt that budget aid in support of the overall national development strategy and sector strategies would enhance the effectiveness and efficiency of development cooperation and would contribute to more sustainable development.