Switzerland’s aid volume was USD 2.02 billion in 2008, an increase of more than 6% over the previous year, and a total of 0.42% of its gross national income (GNI). In 2008 it had already surpassed its Monterrey commitment to contribute 0.4% of its GNI to official development assistance (ODA) by 2010. Switzerland should adopt a 0.5% target for its aid, keeping in mind the 0.7% UN target. Switzerland has a long tradition of international assistance; its aid to humanitarian causes and multilateral donors serves as an example in good practice. Although Switzerland contributes to international thinking on governance and development in fragile situations, it faces challenges in implementing some of the international principles for making aid more effective, particularly in fragile states. Swiss aid is dispersed among too many countries and sectors, and it now strives to strengthen its focus. While welcoming the steps Switzerland has taken to reinforce its strategic approach to development co-operation, greater cohesion between the Ministries of Economic and Foreign Affairs would reduce duplication and transaction costs. In reforming its aid system, Switzerland will need to do more to set standards, monitor outcomes and assess impact of its development co operation programmes. Switzerland has made progress in bringing areas such as trade and the restitution of stolen assets in line with its commitments to development. It must build on such examples to ensure that all policies are coherent with its development aims. Switzerland must also strengthen efforts to communicate the positive results of aid in order to maintain strong public and political support.