Aid quality is often investigated using cross-country statistical meth
ods. The article takes a more institutional approach. It reviews Briti
sh bilateral aid, in order to investigate the complex interaction betw
een policy and practice in aid for poverty reduction. There has been a
stated desire to increase the poverty focus of the programme. However
, difficult to trace the effect of a new policy in the statistics. Mor
e important has been the influence of an external factor, the increase
in the demand for emergency aid. This has risen from 2 per cent to 14
per cent in a decade, increasing the poverty focus of the programme,
but for the 'wrong' reason. At the same time, the share of technical c
ooperation has increased sharply: it is hard to trace the poverty-redu
cing impact of this form of aid. Statistical analysis which ignores po
licy shifts and changes in aid composition may be misleading.