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It was felt that this general budget support would make aid more efficient and effective, and generate more sustainable results. It would also give donors the opportunity to encourage reform through the accompanying policy dialogue.
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In Zambia, budget support has developed into a highly visible and relevant instrument of development cooperation. The budget increases helped to improve service delivery, especially in the social sectors. Nevertheless, serious challenges remain.
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In May 2005, nine donors signed the Joint Financing Arrangement (JFA). The Netherlands was the third donor and the largest bilateral donor of budget support, with a 16.4% share in the total.