Development assistance is changing quickly. More than half of all aid to some countries now takes the form of direct contributions to the national budget. There has been a distinct move away from sectoral programmes and projects and a decline in related funding from the peaks reached during the early 1990s. This decline has been more marked in productive sectors, including rural development, than in social sectors such as health and education. These changes reflect a poverty focused development agenda. This agenda links the Millennium Development Goals with mechanisms and instruments for delivering aid that includes poverty reduction strategy papers (PRSPs) and general budget support. This paper explores what these changes mean for international forestry assistance.