This study is the first comprehensive analysis of the way Spain's foreign aid may (or may not) contribute to reducing poverty in developing countries. As such, it provides some elements not found in other studies of Spanish aid, but, as a 'pioneering' study, it may also suffer from the defects typical of such studies, particularly in an area where information is very limited. Nonetheless, the authors believe it can be a useful contribution to the ongoing debate in Europe on how to improve the effectiveness of poverty reduction initiatives, particularly in Spain where this topic has received insufficient attention.