Includes bibliographical references (pages 232-242) and index.
Introduction : the need for effective government -- Challenges to effective government : ethnic-nationalism, populist nationalism and weak state institutions -- Wealthier state populist nationalism -- Macroeconomic instability -- Inability of both wealthy and poor countries to reduce regional inequalities -- Governing structures -- Response to governance challenges : the problem of aid design and implementation -- Aid as stimulus for democracy and governmental effectiveness -- Targeting aid to threats against improved governmental effectiveness -- Specific problems with design and implementation of aid -- Summary and conclusions -- Appendix : managing development projects in high risk environments : the case of Pakistan / George M. Guess and Dennis Desantis