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The goal of the rich countries should be to aid the poor countries to increase their standard of living but not to increase their holdings of weapons. It is shown that a basic dilemma arises. The structure of "consumption" of the recipient countries cannot be influenced by giving aid in the form of (civilian) goods rather than untied foreign exchange. The consumption of civilian goods can be increased by granting a price-subsidy but this leads to a smaller increase in utility than obtained with a transfer in money or kind. Transfers of goods with restricted substitutability and "all-or-none" schemes are suggested to overcome these conflicts, but they imply an interference with the internal affairs of the poor countries.

This paper investigates the impact of foreign aid on the quality of institutions in recipient countries. Our identification strategy exploits the shift in US foreign policy due the attacks on the World Trade Center on September 11th, 2001 as a quasi-natural experiment. The associated change in strategic importance of certain countries is resembled in the pattern of foreign aid flows. We estimate the impact of US foreign aid on different measures of institutional quality in a cross-country panel data set of developing countries. Our results indicate that foreign aid impacts different dimension of a country's institutions: When focusing on the rule of law aid seems to have a detrimental effect. However, the tax burden imposed on the citizens in recipient countries seems to be reduced by aid payments. When looking at the general level of democratization, we cannot find any conclusive results.

The purpose of this paper is to examine how recent trends in Australian aid expenditure align with the literature on aid effectiveness through a quantitative analysis of time-series data on Australian aid flows. The Australian aid program has experienced rapid expansion over the past decade. Recent announcements from the Coalition government, however, have brought this period of unprecedented growth to an end. For this reason, foreign aid as a transfer of resources from rich countries to relatively poorer countries becomes an even more limited resource and hence its effectiveness is crucial in achieving better development outcomes. A literature review was conducted in order to establish a framework of aid effectiveness that is directly controlled by donors and on the objectives which frames donors' decisions for recipients. Four key areas of aid effectiveness are selected to form a background analysis. These are aid delivery channels, geographic scope of aid allocation, aid fragmentation and aid volatility. An overview of the current Australian aid program, its objective and a review of how different reforms and policies fit into the framework are presented. The analysis is divided into separate case studies looking at individual aspects of what makes Australian aid at the macro-level 'effective'. These case studies are compared against the aid effectiveness framework based on the literature review. Three data sources were examined and these include: Australia's International Development Assistance: Statistical Summary (Green Book); AusAID Budget documents (known as the blue book) and the OECD DAC aid databases. An analysis of multiple case studies shows that overall the effectiveness of the Australian aid program could be improved and some parts of the aid effectiveness agenda are regressing. Specifically, fragmentation, the process of donating aid to many countries rather than focusing on a select few has increased in Australia. However, this fragmentation has been offset, until recently, by an associated increase funding to the aid program. Geographic scope associated with historical ties and regional expertise is pertinent to Australia's decisions to allocate the majority of its aid to its immediate neighbouring, predominately, Indonesia and Papua New Guinea (PNG). The ability to control aid programs in recipient countries and align them with Australia's own national interests significantly influences Australia's decision to deliver aid through a bilateral channel. In the context of other donors, Australia fairs reasonably well, it is selective in allocating aid to different sectors. Its emphasis is on governance sector sectors which promote long-term development outcomes within recipient countries and thus creates a stable area to enable effective aid. Australia also allocates a large portion of their aid to their significant recipients resulting in aid being a reliable source of finance to these countries. Australia could improves its aid program by delivering more aid through multilateral channels and be more selective in recipient countries. The recent change in government has led to a change in the objective of the Australian aid program; the implications will be detrimental to the effectiveness of its aid.

1. Migration and HIV infection : what does data from destination countries show? / Islene Araujo, Mary Haour-Knipe, Karl Dehne -- 2. Leaving loved ones behind : Mexican gay men's migration to the USA / Hector Carrillo -- 3. Concentrated disadvantages : neighbourhood context as a structural risk for Latino immigrants in the USA / Emilio A. Parrado, Chenoa A. Flippen, Leonardo Uribe -- 4. Conflict, forced migration, sexual behaviour, and HIV/AIDS / Bayard Roberts and Preeti Patel -- 5. Negotiating migration, gender, and sexuality : health and social services for HIV-positive people from minority ethnic backgrounds in Sydney / Henrike Karner -- 6. Treat with care : Africans and HIV in the UK / Jane Anderson -- 7. Touristic borderlands : ethnographic reflections on Dominican social geographies / Mark B. Padilla and Daniel Castellanos -- 8. Rice, rams, and remittances : bumsters and female tourists in the Gambia / Stella Nyanzi and Ousman Bah -- 9. Fantasies, dependency, and denial : HIV and the sex industry in Costa Rica / Jacobo Schifter and Felicity Thomas -- 10. 'Que gusto estar de vuelta en mi tierra' : the sexual geography of transnational migration / Jennifer Hirsch and Sergio Meneses Navarro -- 11. From migrating men to moving women : trends in South Africa's changing political economy and geography of intimacy / Mark Hunter -- 12. Labour migration and risky sexual behaviour : tea plantation workers in Kericho District, Kenya / Kennedy Nyabuti Ondimu -- 13. Young sex workers in Ethiopia : linking migration, sex work, and AIDS / Lorraine van Blerk -- 14. Labour migration and HIV risk in Papua New Guinea / Holly Wardlow -- 15. Migration, men's extramarital sex, and the risk of HIV infection in Nigeria / Daniel Jordan Smith -- 16. Migration, detachment, and HIV risk among rural-urban migrants in China / Xiushi Yang.

THIS ANALYSIS IS AN ATTEMPT TO DEAL WITH THE PROBLEM OF INCLUDING INDICATORS OF THE ACTIVITY OF OTHER LEVELS OF GOVERNMENT IN THE SPECIFIC AREA OF LOCAL GOVERNMENT EXPENDITURE POLICY. AN EMPIRICAL ANALYSIS OF EXPENDITURES ON HOUSING AND URBAN RENEWAL AND INTERGOVERNMENTAL AID FOR CITIES IS PRESENTED TO SUPPORT THEORETICAL POINTS BEING MADE.

Last month WHO declared the HIV/AIDS epidemic a global health emergency. Should governments go one step further and treat it as a disaster?