Indeed, large aid flows are going to middle-income countries that are already growing rapidly. If aid were focused on LDCs it would permit a major expansion in the aid flow to LDCs without requiring any increase in OECD aid budgets. As the category of emerging market economy expands, it is important that these countries cease to be aid recipients so that aid can be concentrated on those countries that really need it. In making the case for reallocating aid, three rationales for providing aid to middle-income countries must be countered.