My thesis will examine the interactions of institutions, elites, violence and aid effectiveness. I will attempt to unlock this puzzle by interrogating the governance of economic and political markets in the Autonomous Region of Bougainville. Case studies will seek to establish how elites control (or create) and distribute rents, and attempt to clarify under what conditions elite coalitions are developmental and if, and how, rent distribution is used to constrain violence. I hope to use the results of this analysis to develop and test a framework for assessing aid effectiveness (or for informing aid policy).