Adapting financial aid to needs of recipient countries

A variety of flexible forms of assistance which are tailored to the recipient's specific needs have been created by several donors, including the World Bank. For example, a Special Action Programme, adopted by the World Bank in 1983 in response to the urgent needs of developing countries, concentrates on accelerating disbursements to rehabilitate existing capacity and complete priority projects. The local and recurrent cost component of projects have also been funded by bilateral donors in individual cases.

Donors have the challenge of increasing the proportion of concessional assistance going to low-income countries and progress has been made in increasing such assistance going to low-income Africa; however, these increases may be due to a shift of aid away from other low-income countries, such as India, rather than from middle-income countries.