This study explores the effects of foreign aid on democracy in Mozambique during the last decade. Aid for democracy built on historic relationships forged between donors and the government during the wartime humanitarian emergency. Foreign aid played an important role in Mozambique.s transition from war to peace and from single-party rule to multiparty politics in the early 1990s. Since 2000, aid has shifted markedly toward general budget support and away from project support. Emphasis has moved from building central government institutions to bolstering local governance, and from a focus on democracy to good governance.