stand-alone projects and conditionality- led stand- structural adjustment programs toward partnerships and mutual accountability (World Bank, 1998). Besides research on the determinants of growth, recent work has examined the importance of institutions and good governance for aid effectiveness in recipient countries for example, Svensson 1999; Bumside and Dollar 2000, 2004 and Dollar and Svensson 2000), findings
produce all of the social or public goods we need. This Neo-liberal ideology was grounded in the 'classical liberal tradition', which was primarily hailed by Adam Smith in his treatise, The Wealth of Nations, in 1776. For Smith, the individual should be freed from government interventions which would enhance the wealth of nations. According to Smith and the classical liberal tradition markets were the best forces to coordinate and distribute the productions and goods effectively. Neo-liberalism goes