Development Cooperation Ireland, 2005. This study assesses the changing environment for aid planning and management in Ethiopia in 2002–2004. It reviews the aid modalities chosen by the Development Cooperation Programme, and their relevance and effectiveness. The Ethiopian government has shown itself to be serious in its desire to tackle poverty and be a credible partner. A shift towards sector programme and direct budget support is essential if Ethiopia is to absorb the volumes of aid its people deserve.