Instrumental Philanthropy: Trade and the Allocation of Foreign Aid

2010 ◽  
Vol 43 (3) ◽  
pp. 733-761 ◽  
Author(s):  
Erik Lundsgaarde ◽  
Christian Breunig ◽  
Aseem Prakash

Abstract.“Trade, not aid” has long been a catchphrase in international development discourse. This paper evaluates whether the “trade, not aid” logic has driven bilateral aid allocations in practice. Using a dataset that covers development assistance from 22 donor countries to 187 aid recipients from 1980 to 2002, we find that donor countries have dispersed bilateral aid in ways that reinforce their extant bilateral commercial ties with recipient countries. Instead of “trade, not aid,” bilateral aid disbursement has followed the logic of “aid following trade.” The policy implication is that bilateral aid allocation patterns have reinforced the disadvantages of poor countries that have a limited ability to participate in international trade due to a variety of factors such as geography and a lack of tradable resources.Résumé.«Le commerce et non l'aide» est un slogan qui continue d'occuper une place importante dans le débat sur le développement international. L'article qui suit vise à évaluer la mise en pratique de ce principe dans les allocations de l'aide bilatérale. S'appuyant sur une base de données recouvrant l'aide distribuée par 22 pays donateurs à 187 pays récipiendaires entre 1980 et 2002, notre analyse révèle que l'aide a été allouée en fonction des liens commerciaux bilatéraux existants et les a renforcés. C'est donc le principe de «l'aide après le commerce» qui a prévalu. Les allocations d'aide bilatérale ont ainsi aggravé les désavantages des pays pauvres dont la capacité à bénéficier du commerce international est limitée en raison de divers facteurs, dont la situation géographique et le manque de ressources marchandes.

Author(s):  
Dan Honig

This chapter traces the relationship between political authorizing environments, international development organization (IDO) management, and IDO field agents, drawing on the empirics presented in chapters 6 and 7. It digs into the experience of working for USAID as compared to DFID. It also extends the discussion of delegation to implementing contractors and brings this book’s theorizing of Navigation by Judgment into conversation with other foreign aid solutions aimed at incorporating local knowledge, such as establishing country offices or ensuring projects have country ownership. This chapter connects Part II’s empirics more tightly to the mechanisms theorized in Part I , particularly the role of authorizing environment insecurity and the need to “manage up” (Chapter 4) and their implications for the workplace experience of agents (Chapter 3) and the entry and exit of personnel.


2019 ◽  
Vol 2 (1) ◽  
pp. 51
Author(s):  
W. Jean Marie Kébré

<p><em>This article analyzes the relationship between external aid and economic growth in the ECOWAS region, with a focus on bilateral and multilateral aid effects. The key idea behind this analysis is an argument of Svensson</em><em> </em><em>(2000)</em><em> that multilateral aid is more effective than bilateral aid because of the high degree of altruism of bilateral donors. He therefore suggested a delegation of bilateral aid to multilateral institutions. To appreciate his suggestion, this analysis used panel data from the 16 ECOWAS countries from the period 1984 to 2014. The results of the estimates, based on the dynamic least squares estimator (DOLS), show a negative effect of foreign aid on economic growth. This negative effect on economic growth persists when the components of aid are introduced into the model. In addition, results highlight that governance is a channel through which foreign aid affect positively economic growth. In these conditions, bilateral aid is more effective on economic growth than multilateral aid. These results about foreign aid received by ECOWAS countries invalidates</em><em> </em><em>Svensson’s</em><em> </em><em>(</em><a title="Svensson, 2000 #5" href="#_ENREF_1"><em>2000</em></a><em>)</em><em> theory. Therefore, a delegation of bilateral aid to multilateral institutions is not relevant because bilateral aid contributes more to economic growth if governance is taken into account.</em></p>


2005 ◽  
Vol 44 (1) ◽  
pp. 108-111
Author(s):  
Faheem Jehangir Khan

Poverty is one of the most depressing global problems in the world today. Therefore, there is a growing consensus among development organisations that poverty alleviation should be the primary goal of cooperation between the rich and the poor countries. This consensus is due to the awareness that a widening international income gap threatens the well-being of people in the rich countries. In this volume, the author, Philip Kircher, offers a comprehensive study on the evolution, the content, the different national accentuations, and the problem of the international consensus on poverty alleviation, and provides a systematic analysis of today’s donor strategies for development cooperation for poverty reduction. The study focuses specifically on the strategic positions of the World Bank, the Department for International Development (DFID) of the United Kingdom, the Ministry for Economic Cooperation and Development (BMZ) of Germany, and the Swedish International Development Agency (SIDA), as well as the positions presented by the governments of these countries in regard to development.


1968 ◽  
Vol 6 (3) ◽  
pp. 361-372 ◽  
Author(s):  
A. F. Ewing

The sombre picture of the economic situation in most developing countries, and not least in Africa, has become increasingly familiar in the last two or three years. Foreign aid is at best not increasing and the terms on which it is offered are hardening. There has been little or no relaxation of the obstacles to increased trade between the developed and the under-developed world. The growth of many poor countries has been limited; and, indeed, within the developing world, the gap between those at the top and those at the bottom is growing, as is that between the developed and the under-developed world as a whole.


1990 ◽  
Vol 19 (1) ◽  
pp. 21-37
Author(s):  
Michael Bratton

Of all the policy issue areas that concern the U.S. government in its relations with Africa, economic assistance policy has attracted the deepest and widest involvement from U.S. university scholars. University-based analysts have enjoyed numerous avenues of access to officials who define, design, implement and evaluate U.S. foreign aid programs for sub-Saharan Africa. U.S. universities have stronger institutional linkages with the U.S. Agency for International Development (USAID) than with any other Washington institution discussed in this ISSUE, including the U.S. Congress and agencies within the the national security bureaucracy.


Author(s):  
Jolene Fisher

This chapter constructs a historical overview of digital games used for international development. While the decade long use of digital games in this field has seen mixed results, a trend towards gamification has continued. The various approaches to international development taken in these games are analyzed alongside the gaming goals, platforms, and narrative structures. Broadly, this chapter argues that the field of digital development games breaks down into three categories: Developing Developers, Digital Interventions, and Critical Play. Because these games are tied to larger frameworks of development thought, they are an important part of the development discourse and should be critically analyzed, regardless of their success at the level of individual attitude and behavior change. Such an analysis presents a useful way to think about what's happening in the current development field and how the trend towards gamification may impact its future directions.


Author(s):  
Peter A. Kwaku Kyem

There is a considerable debate about how the technological gap between rich and poor countries of the world can be bridged or eliminated. Technological optimists argue that Information and Communication Technology (ICT) can bring accelerated development to poor countries. Others question the viability of relying on ICT for development in low income countries. The ensuing debate has masked the digital divide problem and prevented a true discussion of how ICT can be deployed for the benefit of low income countries. On the otherhand, confronted with the persistent failures of one-size-fits-all economic development models, low income countries can no longer treat modernization as the pivot towards which all ICT-related development efforts must gravitate. There is a need to drop the singular vision of development which is premised on the experiences of Western developed nations and rather restore local actors and their cultures into the actual roles they play in development processes that occur within localities. Accordingly, this chapter reviews the perspectives that currently shape the ICT for development discourse and offers the multiplicity theory to bridge the gap in development theory and promote a development strategy which incorporates activities of both local and global actors in the development of localities.


2020 ◽  
pp. 3-31
Author(s):  
Ilan Kapoor

This chapter examines the contributions of psychoanalysis to international development, illustrating ways in which thinking and practice in this field are psychoanalytically structured. Drawing mainly on the work of Jacques Lacan and Slavoj Žižek, it emphasizes three key points. First, psychoanalysis can help uncover the unconscious of development — its gaps, dislocations, blind spots — thereby elucidating the latter's contradictory and seemingly “irrational” practices. Second, the important psychoanalytic notion of jouissance (enjoyment) can help explain why development discourse endures, that is, why it has such sustained appeal, and why we continue to invest in it despite its many problems. Third, psychoanalysis can serve as an important tool for ideology critique, helping to expose the socioeconomic contradictions and antagonisms that development persistently disavows. The chapter then reflects on the limits of psychoanalysis — the extent to which it is gendered and, given its Western origins, universalizable.


Author(s):  
Malone David M ◽  
Medhora Rohinton P

This chapter develops the hypothesis that the ‘golden age’ of international development organizations may be coming to a close, in part perhaps as victims of their own success. Even if they do not disappear, a recasting away from traditional poverty alleviation in poor countries to provision of global public goods (financial stability, climate change mitigation, and more controversially, security) is likely to accelerate. The chapter is organized as follows. Section 2 discusses the results of the immediate post-war period, in particular the Bretton Woods organizations, the UN system, and the regional development banks. Section 3 considers the parallel emergence of the foundations, the large NGOs with a global reach, and the more recent ancillaries to the established official organizations, such as the vertical funds and trust funds. Section 4 examines a constellation of international developmental actors, highlighting the transition that each sub-group within it is undergoing. Section 5 concludes that the prognosis for organizations caught in this transitional stage in global economic governance is uncertain. The challenge will be for the global community to craft what the 2013 Human Development Report calls ‘coherent pluralism’.


2018 ◽  
Vol 2018 (4) ◽  
pp. 100-121
Author(s):  
Elena Balter ◽  
Aleksandra Morozkina

This article examines the impact of financial crisis of 2008-2009 on allocation of development aid. Using OECD data on Official Development Assistance (ODA) allocation for international development by key donor countries, authors test three hypotheses: first, general impact of crisis on ODA allocation; second, impact of crisis on three recipient income groups; third, impact of crisis on relative importance of analyzed factors for ODA allocation decisions. The results show that general impact of crisis on ODA volumes was negative, although donors preferred to increase aid to low-income countries. Impact of factors describing economic situation in donor countries (public debt level, government expenditures and donor growth) increased after crisis. Donor countries might make use of these results to increase efficiency of their development assistance strategies, whereas recipient countries may exploit these results in order to attract more external financing for development.


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