Nick Shaxson has written a first rate price on the TJN blog. He refers to IMF thinking on aid, just published, that says:
We find little robust evidence of a positive (or negative) relationship between aid inflows into a country and its economic growth. We also find no evidence that aid works better in better policy or geographical environments, or that certain forms of aid work better than others. Our findings suggest that for aid to be effective in the future, the aid apparatus will have to be rethought.
Actually, we agree. It's why we talk about tax as the essential fourth leg in the development agenda. Read Nick's piece to learn more.