Aid given by non-DAC donors (“new donors”) gains increasing attention. The recent literature moved beyond the presentation of qualitative evidence to more rigorous analyses based on improved data collection. In this paper we investigate the lessons of this emerging literature. We discuss whether the allocation of aid from non-DAC donors is different from that of DAC donors and how non-DAC donors differ among each other. We also discuss how the presence of non-DAC donors might impact on the effectiveness of aid. Overall, we argue that non-DAC aid is not necessarily inferior to DAC aid.
