Wouldn’t corrupt officials just pocket the money?
COD Aid would be no more susceptible to unlawful diversion than other forms of foreign aid to developing country governments. The key difference is that the COD Aid funds would only be disbursed if goals have been achieved; whereas normal project spending is disbursed against the purchase of inputs whether or not the project’s goals are achieved. The COD Aid contract could only be offered to countries that had demonstrated good governance (e.g. through the World Bank and IMF public expenditure and financing indicators) or require public disclosure of the funds received to improve transparency and public scrutiny.
