is of more relevance as an alternative explanation for fungibility. In simple terms, aid can appear to be misallocated simply because budgetary and expenditure monitoring processes are imperfect; it is not necessary that recipients have malicious intent. One can only agree that with the authors' exposition of 'aid illusion' cases and it would be desirable if donors reconsidered how to address fungibility. To some extent, this paper provides part of the answer as to why conditions attached to the way in which aid is delivered and spent are ineffective at preventing misallocation.
Given the policy importance attached to the Assessing Aid recommendations, the first three chapters, especially the thorough critical assessment by Dalgaard and Hansen, are strengths of this volume and they should be brought to the attention of donors before they alter aid allocation criteria. McGillivray and Morrissey provide ideas on tackling fungibility. Other than being of interest to donor officials, these chapters provide a rich source for students of development, especially aid effectiveness, and many ideas for directions of future research. The book highlights the complexity that surrounds aid policy and gives rise to strong reservations about the 'received wisdom' provided in the World Bank report, which now appears as only a first step towards an accurate assessment of aid.