Success in policy reform through policy dialogue
This paper addresses the issue of encouraging policy change in developing countries, from a donor's perspective, using A.I.D. as a case in point. Because host countries are sovereign, donors are limited to only two ways to influence policy change in developing countries: as a condition for financial transfers, and through policy dialogue that convinces the countries to undertake the policy because of technical/ethical conviction. Conditionality, particularly for bilateral donors, is of only limited utility. Therefore, it is evident that dialogue will continue to be a key component of policy change.