Aid Understanding International Development

In this comprehensive study on global aid, the authors argue that no better alternative exists to replace taxpayer-financed aid as the main mechanism for promoting greater equality between North and South and within the countries of the South. It should therefore be continued while at the same time being made more effective and efficient, and the authors present ideas to achieve this. They conclude by examining new modes of financing development and new modes of international cooperation aimed at bringing about growth and human development.

John Degnbol-Martinussen is Dean of the Graduate School of International Development Studies, Roskilde University in Denmark.

Poul Engberg-Pedersen is with the Governance and Public Sector Reform Group of the World Bank, Washington D.C.

Figures, Tables and Boxes

viii

Abbreviations

x

Preface

xiii

Introduction

1

(6)

The logic of the presentation

1

(2)

Central themes

3

(4)

Motives and Interests

7

(18)

Historical background

7

(3)

Moral and humanitarian motives

10

(2)

Political and economic motives and interests

12

(3)

Environmental considerations

15

(1)

Summary of motives for giving development assistance

16

(1)

Theoretical arguments for and against foreign aid

17

(3)

The micro level and arguments for aid to the poor

20

(1)

Recipient countries' motives for receiving foreign aid

21

(2)

Foreign aid after the end of the Cold War

23

(2)

Development Goals

25

(14)

Development goals of foreign aid organizations: historical background

25

(2)

Poverty eradication and other development goals for foreign aid since the 1990s

27

(1)

Women and gender equality

28

(2)

Democratization and good governance

30

(2)

Human development and focus on poverty

32

(1)

Foreign aid to the private sector

32

(1)

Foreign aid to institutional development

33

(2)

Development goals in NGO cooperation

35

(2)

Summary of development goals

37

(2)

Aid Strategies

39

(17)

Intervention types, aid forms and levels of society

40

(4)

The 1960s: Trickle-down

44

(1)

The 1970s: Integrated rural development projects and fulfilment of basic needs

45

(2)

The 1980s: From projects to structural adjustment programmes

47

(2)

The 1990s: Political, economic and institutional society-building

49

(3)

1960--2000: Constant elements and new challenges

52

(1)

Foreign aid strategies and donor groups

53

(3)

Size and Distribution of Foreign Aid

56

(18)

Official development assistance

56

(2)

The size of development assistance

58

(4)

Development assistance from Eastern and Southern countries

62

(2)

Multilateral and bilateral aid

64

(2)

Distribution among regions and countries

66

(1)

Distribution by sector and type of aid

67

(2)

Foreign aid's significance for recipient counties

69

(1)

Foreign aid and other transfers between industrialized and developing countries

70

(4)

Official Bilateral Assistance

74

(20)

Cooperation among the DAC countries

74

(2)

The USA's foreign aid and national security policy

76

(4)

Japan's foreign aid and foreign economic policy

80

(3)

France's foreign aid and foreign policy

83

(3)

The United Kingdom's foreign aid and development policy

86

(3)

Denmark's foreign aid and development policy

89

(3)

Summary of the variations in bilateral aid

92

(2)

Multilateral Aid

94

(49)

Multilateral aid: Complexity in goals and organization

95

(3)

Political expectations for multilateral aid

98

(4)

Size and composition of multilateral aid

102

(4)

Financing multilateral aid

106

(3)

The UN system: Strengths and weaknesses

109

(9)

The World Bank: Strengths and weaknesses

118

(7)

The European Union: Strengths and weaknesses

125

(6)

Active multilateralism by small countries

131

(4)

Multilateral aid since the 1990s

135

(8)

The Role of NGOs in Development Cooperation

143

(31)

Four generations of NGOs and their strategies

144

(3)

Third-party and first-party organizations

147

(1)

Choice of partners and forms of cooperation

148

(3)

Catalysts for development

151

(2)

Empowerment strategies

153

(2)

Multi-pronged strategies

155

(2)

NGOs' comparative advantages under debate

157

(1)

Convergence and competition between NGOs and official aid organizations

158

(2)

Long-term effects and sustainability

160

(2)

NGOs' development education and advocacy activities

162

(1)

NGOs' relationship to states in the North

163

(2)

NGOs' relationship to states in the South

165

(1)

Variations regionally and over time

166

(2)

Variations among NGOs

168

(2)

`Small is beautiful' -- is it also effective?

170

(4)

Actors in Aid Interaction

174

(25)

Professionalism and distance

176

(2)

Participation and institutions

178

(3)

Popular support and aid policy-making in donor countries

181

(4)

The institutional framework for aid in developing countries

185

(3)

Survival of the project aid form

188

(2)

Donor coordination and aid integration

190

(3)

Aid management and politics

193

(2)

Actor interaction on different levels of society in developing countries

195

(4)

Emergency Relief and Humanitarian Assistance

199

(17)

Disasters and relief: Myths and realities

201

(4)

The multilateral response to complex emergencies

205

(3)

Aid, society and conflict

208

(2)

Challenges to the effectiveness of humanitarian assistance

210

(6)

Evaluation

216

(14)

Evaluating aid

217

(2)

Different types of evaluations

219

(3)

Participatory evaluations

222

(2)

Challenges for evaluation work

224

(1)

Use of evaluations in North and South

225

(2)

Aid for capacity-building in the South

227

(1)

Aid for learning to learn

228

(2)

The Impact of Aid

230

(37)

Aid impact assessment: A neglected and difficult research field

233

(2)

Aid and other development factors

235

(4)

Macro-effects of aid

239

(3)

Assessing Aid -- overview of the debate

242

(4)

Assessing Aid -- implications for selectivity in aid allocations

246

(5)

The impact of policy-oriented programme aid

251

(5)

Aid and poverty reduction

256

(2)

Aid projects and poverty reduction

258

(3)

Evaluation of institutional performance in poverty reduction

261

(3)

Conclusions

264

(3)

Problems and Challenges of Development Cooperation with States in the South

267

(18)

Changed global conditions for development

267

(2)

Weak states under external paternalism

269

(2)

Aid forms and ownership

271

(2)

Corruption and political culture

273

(6)

Democratization, human rights and aid

279

(2)

The state as a development problem

281

(4)

Perspectives and Prospects for Development Cooperation in the Twenty-first Century

285

(32)

Aid through an international development fund

286

(3)

International payments for services

289

(1)

Compensation for harmful international behaviour

290

(2)

Financing through earmarked taxes

292

(1)

Aid to promote private capital transfers

293

(1)

National ownership, donor demands and sustainability

294

(3)

Aid and governance: Between politics and management

297

(4)

Performance-based aid: Goals and country circumstances

301

(5)

Performance-based aid: Aid forms and agencies

306

(5)

Future aid models

311

(6)

Appendix Donor Countries and Recipient Countries

317

(3)

References

320

(18)

Index

338

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Aid Understanding International Development Cooperation

Summary

Author Biography

Table of Contents

Supplemental Materials