L12 - Official Development Assistance

L12 - Official Development Assistance - Official...

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Main Title Subtitle Official Development Assistance Geography of Developing Countries José D. De León, PhD Student Instructor
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Important Questions • What is the geography of foreign aid and its relationship with the development discussion? • Can Third World countries rely on assistance from developed countries for their development? • Does foreign aid do more harm than good ?
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Defining Foreign Aid • "The administered transfer of resources from the advanced countries for the purpose of encouraging economic growth in developing countries." [Bannock:1988 P.164] • Certain requirements need to be met: – Its objective must be noncommercial from the point of view of the donor, and – It should be characterized by concessional terms.
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Development aid: A short history • Marshall Plan – Reconstruction • 1960s – Decade of industrialization • 1970s – A focus on poverty • 1980s – Stabilization • 1990s – Good governance
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An Auspicious Beginning
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Types of International Lending Multilateral IMF, IADB, AfDB, ADB, World Bank, UNDP, WHO Private Initiatives CARE, Charitable Foundations, Oxfam, Foreign Direct Investment, Remittances Bilateral USAID, DfID, EU, Japan
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Bilateral vs. Multilateral
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Types of Aid • Macroeconomic stabilization – Balance of payments crises – Structural adjustment • Humanitarian or emergency aid • Tied vs. untied aid • Development or infrastructure – Project-oriented grants and loans – Program assistance – Food aid – Technical Assistance – Sector-wide Approaches
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Tied Aid and Development • Strategic interests of donors • Inflexibility • Tied to a Development Industry • Divorced from ground realities…
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Motives for giving AID Economic objectives (Germany and Japan) A mission to maintain close relationships (France and Britain) Relief and Reconstruction after disasters National Security Concerns (USA)
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Motives for giving AID Humane Objectives (Canada, Netherlands and Scandinavian countries) Assist with Democracy and good governance (USA, Britain) Promoting respect for human rights Poverty reduction
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Which countries provide AID • Over 95% of ODA now comes from members of the Development Assistance committee (DAC) of the OECD members • The OECD comprises 22 developed countries including the European Union
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Official Development Assistance: Donors Let’s examine some of the top donors!
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Official Development Assistance: Donors
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Official Development Assistance: Recipients
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Official Development Assistance: Recipients
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Official Development Assistance:
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L12 - Official Development Assistance - Official...

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