Report – Evaluation of General Budget Support to Nicaragua 2005-2008

During the past decade donors and recipient countries have shifted increasingly from a project approach to general and sector budget support. The expectation was that budget support, by contributing to the overall national development strategy and sector strategies, would enhance the effectiveness and efficiency of development cooperation. General Budget Support (GBS) is financial aid that is not earmarked to specific projects or sectors and directly channelled to partner government’s national budget. The Netherlands has been providing GBS since 1998. In 2009 GBS was directly provided in ten countries. GBS is not without controversy and its impact on poverty reduction has frequently been questioned in Dutch parliament and in the press.