This paper seeks to deconstruct some myths around “value for money” and promote a more constructive discussion about the relevance and limitations of the concept to development co-operation. It takes as its starting point the fact that few people disagree that we want development funds to be used as effectively as possible. We all – donor agencies and governments, tax payers, partner country governments and citizens - want aid to work as well as it can. We all know that aid budgets are limited and so need to be well targeted and managed. So it is surprising that the concept of value for money in development has caused so many waves. This paper argues that once we untangle the confusion around what value for money really means it is clear that, as a concept, value for money is relevant to development co- operation. The challenge then is in applying this concept in a productive and pragmatic way, so that it can be a tool for development co-operation and not a straitjacket.