Three of the four noted threats in Figure 0.1 directly affect state effectiveness. They can undermine states, hollow-out institutions with servile, unprofessional cronies, damage budgetary stability and destroy services and programs throughout many countries. Can ODA make a difference to stemming the ethnic and populist nationalist forces? We have noted that it can and has made an important difference to macroeconomic stability in many regions among rich and poor countries alike through installation and use of PFM systems and analytic tools to measure and control economic aggregates.