This paper advocates remodelling Europe’s aid system to make it cost less and deliver more. It proposes a system whereby countries receive support according to their implementation of institutional change over the medium to longer term. The rationale is that many governments, formerly propped up by superpower protagonists during the Cold War, no longer perform even basic state functions adequately. This paper advocates remodelling aid to incentivize gradual regulatory change as a means to advance legitimate administrative and political systems for citizens’ long-term benefit.

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