Each donor tends to undertake its own identification missions, negotiate the terms of the projects to be sponsored, impose its own accounting methods, define its own conditions, and conduct its own monitoring and evaluation. This not only increases the direct cost of providing aid but also tends to affect the institutional capacity of recipient countries, which complicates the pursuit of coherent, long-term development policies by Governments. Aid fragmentation has also rendered the flow of resources less predictable and more volatile, thereby making the management of budgetary processes highly dependent on aid flows all the more challenging.