Donor governments have often pursued multiple interests in development assistance, including economic and geo-political goals - e.g. contracts for their domestic firms, support for friendly political regimes - which have not always been consistent with the sustainable development objectives of host countries. This has resulted in development aid, and particular tied bilateral aid, having a very mixed record. It is increasingly recognised that Official Development Assistance (ODA) can be better used to address the fundamental determinants of development, which include a sound policy environment, strong investment in human capital, well functioning institutions and governance systems and environmental sustainability rather than as a leading source for investment in environmentally sound and cleaner technologies. This realisation has arisen not least from the mixed experience with development aid programmes.
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