Most of Sub-Sahara Africa is likely to miss the Millennium Development Goals by a wide margin. Therefore, the United Nations have called for significantly increased development aid. The Action Plan for Africa of G8-countries promises to concentrate aid on this region. This raises the question whether the African recipient countries offer promising local conditions for increased aid to be used productively. Furthermore, it is open to question whether the distribution of aid by the donors is well targeted to poor countries with reasonable local conditions. In both respects, we find that words deviate substantially from deeds. In particular, the aid allocation by donors has hardly responded to recent changes in the institutional and economic policy conditions prevailing in African recipient countries.