This article introduces the special issue of "Prospects" on "Aid effectiveness in education". It brings together case studies of attempts in several very different contexts to improve the effectiveness of the use of aid in the education sector. By drawing on the historical evolution of the new paradigm over the last 20 years, the authors make the case for a closer focus on aid's effectiveness in education, as well as the need to reform the aid effectiveness architecture. In particular, they identify two major obstacles that need to be overcome to improve aid's effectiveness in education: the lack of sufficient institutional and staff incentives for coordinated and harmonized behaviour; and factors that lead to risk-aversion and discourage innovation in delivering aid effectively.