This volume is the result of a workshop held at the Institute of Social Studies in The Hague in October 1995. The workshop explored the evaluation of programme aid and brought together academics with relevant field experience as well as aid agency officials. The work presented here is intended to be a first step towards establishing an agreed methodology for the evaluation of programme aid.Programme aid is an important component of aid. A review of the available evidence reveals that the objectives of programme aid are frequently unclear or, if stated, the mechanisms by which they are to be achieved are not spelt out. This volume contains three papers on conceptual issues viz. macroeconomic impact, poverty analysis and counterpart funds. It also answers the question: what is programmeaid? andlooks at the different forms of programme aid. The document also highlights the importance of programme aid, concepts and issues.