Look at this cool website called MicroPlace. It allows members of the public to select 'investments' in microfinance institutions around the world and directly invest in them. It's a great idea because it puts donors in the driving seat.
This is the way the whole development sector must go. People in developed countries want to have control over their donations and see exactly where it is going. They want to read an evaluation report of the specific project they are supporting. They want to read the honest opinions of the project's beneficiaries on the website.
The first step in building this kind of system must be greater transparency on the part of governmental and non-governmental development agencies.