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Abstract
This paper seeks to explain why foreign aid to the health sector in the Least Developed Countries has increased yet failed to yield substantial improvements. The Millennium Development Goals associated with health serve as marker for success yet are currently not on track to be met with the current level of progress. This research will evaluate the hypothesis that the discrepancy between donor interests and recipient needs leads to the ineffectiveness of aid. By applying an agency theory framework to the area of foreign aid, this research identifies institutional problems of information and coordination as the primary influence on aid ineffectiveness.