Environmental aid to Eastern Europe: problems and possible solutions

Over the past few years there has been a great deal of discussion concerning the problems relating to bilateral aid to Eastern Europe. This paper examines some of these issues in detail and offers possible solutions, using examples from three of the Nordic countries. Among the problems raised are how to choose between consultants from donor and local expertise in the preparation of aid projects, how to assess cost effectiveness of environmental aid when there are no clear goals or policies, and how much funding is needed for pre-feasibility studies in order to cope with project risks. The paper concludes with a discussion of proper criteria for assessments of effectiveness of environmental aid. A key question in this regard is whether aid projects should be donor or recipient driven.