Abstract: Development aid cannot be allocated purely on criteria of selectivity (selecting recipient countries with good economic policy indicators). Indicators of good economic development are not robust and correlation of these indicators with poverty alleviation is not automatic; more emphasis needs to be given to redistribution policies. Development aid as a percentage of total flows is declining and is too small and inefficient to provide sufficient buffers to recurring international crises. A system of global economic, social and political governance is discussed in which development aid is part of wider global redistributive mechanisms to foster social progress and development in the 21st century.