Chapter 5 | Page 208 impact. While economic studies point to positive growth outcomes from aid programmes, particularly in poor countries, aid has also been shown to impact on public sector fiscal behaviour in relation to taxation, borrowing, and expenditure decisions, which are affected by the flow of aid money.89 Such impacts are often unpredictable given that aid flow itself often fluctuates with economic cycles.90 Aid and trade policies must also be coordinated at a high level in order to achieve their full benefits.91 Although many countries have liberalised their trade regimes during the last few decades, very few have reaped the growth dividend associated with this policy, mainly due to structural and institutional challenges, such as the inherently ‘unfair’ global trade structure, or the weakness of the trading private sector in these countries.92 Therefore, for many poor countries, the choice involves much more than aid or trade; rather it is about the composition and effectiveness of trade in relation to overall growth.93 Therefore, addressing the challenges faced by poor countries within the international economic and trade regime and harmonising international assistance and co-operation activities with the domestic macroeconomic policy are essential to maximise benefits for these countries. 5.3.2.2 Donor-recipient relationship and aid effectiveness How effective is development aid in achieving the desired outcomes? Key issues in the current aid architecture include ownership challenges and the need to establish shared principles between and among new and emerging donors.94 The effectiveness of aid is often considered in terms of whether it 89 Franco-Rodriguez, Morrissey and McGillivray, above n 14. 90 Ortiz, above n 15, 69. 91 Oliver Morrissey, 'Aid or Trade, or Aid and Trade?' (2006) 39(1) The Australian Economic Review 78–88, 78. 92 Ibid. 93 Ibid., 86. 94 Franke Toornstra and Frédéric Martin, 'Building Country Capacity for Development Results: How Does the International Aid Effectiveness Agenda Address the Capacity Gaps?' in Hany Besada and Shannon Kindornay (eds), Multilateral Development Cooperation in a Changing Global Order (Palgrave Macmillan, 2013) 89, 89.