This chapter explores the implications of the analytical approach for the design of development assistance. The model suggests a number of margins on which we would expect such assistance to have an effect. The results illustrate the difficulties faced by external donors and actors who are trying to improve the situation in developing countries, particularly in weak and fragile states. Some of the issues are well known, particularly the problem that development support might crowd out rather than crowd in government. It is clear that a great deal more has to be understood about the political equilibrium before any reasoned assessment on aid can be reached. Absent this understanding, the triumph of hope over expectation, so characteristic of more than 50 years of policy experience, is likely to continue.
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