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Oxfam International welcomes the World Bank’s decision to review its conditionality practice in 2005. Reforming the way conditionality is designed and applied is critical to improving aid effectiveness, and orienting the aid system as a whole to meet the Millennium Development Goals. However, for the review to make a real difference to the way the Bank operates in developing countries, it needs to do more than account for recent changes in Bank practice. The review should set out a bold agenda, and demonstrate that the Bank, as the world’s largest multilateral aid donor, will be a lead player in making aid more effective for poverty reduction.

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