Research undertaken by ActionAid, has consistently shown that official aid figures make the world’s richest countries appear much more generous than they really are.

The Real Aid report - released in 2005, and Real Aid 2 – released in 2006, both analyse the quality of bilateral aid provided by donors.  In 2005 we calculated that only one third of aid was 'real' aid, targeted at reducing poverty. The remaining two thirds is 'phantom' aid which does not fight poverty.

The latest figures available in 2006 did show a small improvement – with slightly more real aid being available to genuinely reduce poverty.  In our most recent report we focused upon the biggest proportion of phantom aid – technical assistance, which goes towards consultants, research and training. 

We found that too much technical assistance was both over-priced and ineffective.  In Cambodia, the cost of 740 international advisors was $50-70 million, almost as much as the wage bill for the country’s entire civil service of 160,000 people.

Both Real Aid reports clearly show that the international aid system is in urgent need of radical reform.  Real aid is unlikely to increase significantly unless there is a system of mutual accountability between government donors and recipient countries.  This would balance the legitimate interests of donors, recipients and most importantly, poor people.