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The first edition of Aid and Power has made one of the most significant and influential contributions within development circles. The global recession of the early 1980s prompted a revolution in aid policy. The major aid organizations, and the World Bank in particular, increasingly made aid payment conditional on changes in policy, generally of a type that reduced the level of government intervention in the economy.
The second edition of Aid and Power: Volume One considers the impact this has had on the relationship between donor organizations and developing countries, concentrating on the delicate "bargaining" stage that was the focus of the aid process. It also examines whether policies which the World Bank has promoted have been a success.
This updated edition has been revised to take into account the many developments since the books original publication in 1991, including changes in the Bank itself and the extension of policy based lending to the formerly socialist economies of East and Central Europe.
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