China’s Foreign Aid System and Aid Effectiveness: Analyzing the International Aid Regime and the Expansion of Chinese Aid

2020 ◽  
Vol 22 (3) ◽  
pp. 173-215
Author(s):  
Dongkwun Yang ◽  
Jongpil Chung
2021 ◽  
Vol 13 (1) ◽  
pp. 58-80
Author(s):  
David Dole ◽  
Steven Lewis-Workman ◽  
Dennis D. Trinidad ◽  
Xianbin Yao

The aims of this article are twofold. First, from a historical perspective, it examines the recipient-to-donor transition of five Asian aid donors, namely Japan, Korea, China, India, and Thailand. Specifically, it examines the evolution of their foreign aid programs and practices. Second, it analyzes the effects of Asian aid donors on the international aid regime. We argue that the mix of economic and security goals, which motivated Asian donors to develop their initial economic cooperation programs, have persisted over time. This explains why Asian aid donors have allotted a disproportionate share of their assistance to neighboring countries and their use of foreign aid as a key tool of their commercial and diplomatic policies. Moreover, we contend that the rise and experience of Asian aid donors have created a new dynamic to donor–recipient partnerships and development cooperation like new approaches and modalities. Key findings of this study add to the growing literature on emerging donors and aid effectiveness debate.


1970 ◽  
Vol 10 (4) ◽  
pp. 469-490
Author(s):  
Nurul Islam

Foreign economic aid is at the cross-roads. There is an atmosphere of gloom and disenchantment surrounding international aid in both the developed and developing countries — more so in the former than in the latter. Doubts have grown in the developed countries, especially among the conservatives in these countries, as to the effectiveness of aid in promoting economic development, the wastes and inefficiency involved in the use of aid, the adequacy of self-help on the part of the recipient countries in husbanding and mobilising their own resources for development and the dangers of getting involved, through ex¬tensive foreign-aid operations, in military or diplomatic conflicts. The waning of confidence on the part of the donors in the rationale of foreign aid has been accentuated by an increasing concern with their domestic problems as well as by the occurrence of armed conflicts among the poor, aid-recipient countries strengthened by substantial defence expenditure that diverts resources away from development. The disenchantment on the part of the recipient countries is, on the other hand, associated with the inadequacy of aid, the stop-go nature of its flow in many cases, and the intrusion of noneconomic considerations governing the allocation of aid amongst the recipient countries. There is a reaction in the developing countries against the dependence, political and eco¬nomic, which heavy reliance on foreign aid generates. The threat of the in¬creasing burden of debt-service charge haunts the developing world and brings them back to the donors for renewed assistance and/or debt rescheduling.


Author(s):  
Dan Honig

When should foreign aid organizations empower actors on the front lines of delivery to rely on their judgment to guide aid interventions, and when should distant headquarters lead? Understanding how best to manage the implementation of aid projects matters both for aid effectiveness and for what it tells us about the more general tension between central versus field worker control in organizations.


2021 ◽  
Author(s):  
◽  
Donasiano Kalou Ruru

<p>As a result of increasing development challenges and higher aid allocations to the Pacific, questions of aid effectiveness have become increasingly important. Efforts to professionalise aid delivery tools have been accompanied by debates over whether delivery tools are effective and compatible with more democratic and empowering relationships with beneficiaries. My research examines the effectiveness of international aid to teacher development, using the AusAID funded projects at Lautoka Teachers' College as a case study and the Fiji College of Advanced Education as background study. The conditions governing aid delivery mechanisms are explored, including logical frameworks, participatory processes, and financial probity. These conditions have been drawn from the 'Paris Declaration of Aid Effectiveness' and each is considered to be critical if aid effectiveness is to be enhanced and the investment sustained. Based on participatory research methodology, carried out through 'talanoa sessions', semià à ¢ structured interviews, and analysis of programme documents, the study explored the extent to which aid programmes and management practices are constrained by donor conditions, succeed in meeting their stated aims, and what sort of unintended consequences are generated. Further, the research identified how aid can best improve future aid to the Fiji education system through its delivery, impact and sustainability for national development, as laid out in the Pacific Principles of Aid Effectiveness The study also highlights the growing convergence between the 'aid donors' interests' and 'aid recipients' needs'. The debate on this relationship is necessary to reinvigorate thinking on the effectiveness of aid delivery for Fiji. The study draws up a practical framework, an aid bure designed as a heuristic device to assess the effectiveness of aid delivery for Fiji. The model may also be relevant to the wider Pacific context, and contribute to the global quest for a concrete guide to best practice which above all will continue to foster more sensitive, effective and enduring links between recipient countries and international aid donors.</p>


Author(s):  
Axel Dreher ◽  
Valentin F. Lang ◽  
Sebastian Ziaja

This chapter reviews the aid effectiveness literature to assess whether foreign aid given to areas of limited statehood (ALS) can be expected to promote economic and social outcomes in the recipient country. It distinguishes between different types of aid, motives for granting it, recipient country policies and characteristics, and the modalities by which aid is delivered, as these factors have been argued to influence its effectiveness. This chapter then compares these properties between recipients most affected by limited statehood and those least affected. This allows us to assess the relative effectiveness of aid in countries with ALS. We conclude that on average aid given there is less likely to be effective than elsewhere. As countries with ALS, however, constitute a heterogeneous group, the specifics of individual countries and the types of aid given matter.


2015 ◽  
Vol 14 (1) ◽  
pp. 180-197
Author(s):  
Bokyeong Park ◽  
Hongshik Lee

This study investigates Korea's motivations for foreign aid allocation, analyzing panel data from over 180 countries for the last 20 years. The results show that Korea's aid allocation reflects both recipient needs and Korea's own national interests but does not consistently consider aid effectiveness. Korean aid is also characterized by its use as an instrument of both summit diplomacy and resource security. In addition, its commercial motivations appear to have shifted over time, from export promotion to overseas investment support. Despite internal and external pressures, there is no obvious evidence that Korea's allocation rule converges with international guidelines that recommend greater consideration of recipient needs and aid effectiveness and less consideration of donor interests.


2019 ◽  
Vol 18 (1) ◽  
pp. 15-33 ◽  
Author(s):  
Vincent Konadu Tawiah ◽  
Evans John Barnes ◽  
Prince Acheampong ◽  
Ofori Yaw

Purpose This paper has examined the effectiveness of foreign aid on Ghanaian economy under different political regimes. Design/methodology/approach Using vector error correction and co-integration models on the annual data set over a period of 35 years, the authors demonstrate that foreign aid has had varied impacts on economic growth depending on the political ideology of the government in power. Findings With capitalist political philosophy, foreign aid improves private sector growth through infrastructural development. On the other hand, a government with socialist philosophy applies most of its foreign aid in direct social interventions with the view of improving human capital. Thus, each political party is likely to seek foreign aid/grant that will support its political agenda. Overall, the results show that foreign aid has a positive impact on the growth of the Ghanaian economy when there is good macroeconomic environment. Practical implications This implies that the country experiences economic growth when there are sound economic policies to apply foreign aid. Originality/value The practical implication of the findings of this paper is that donor countries and agencies should consider the philosophy of the government in power while granting aid to recipient countries, especially in Africa. The results are robust to different proxies and models.


2008 ◽  
Vol 22 (2) ◽  
pp. 29-52 ◽  
Author(s):  
William Easterly ◽  
Tobias Pfutze

This paper does not address the issue of aid effectiveness—that is, the extent to which foreign aid dollars actually achieve their goals—but on “best practices” in the way in which official aid is given, an important component of the wider debate. First we discuss best practice for an ideal aid agency and the difficulties that aid agencies face because they are typically not accountable to their intended beneficiaries. Next we consider the transparency of aid agencies and four additional dimensions of aid practice: specialization, or the degree to which aid is not framgemented among too many donors, too many countries, and too many sectors for each donor); selectivity, or the extent to which aid avoids corrupt autocrats and goes to the poorest countries; use of ineffective aid channels such as tied aid, food aid, and technical assistance; and the overhead costs of aid agencies. We compare 48 aid agencies along these dimensions, distinguishing between bilateral and multilateral ones. Using the admittedly limited information we have, we rank the aid agencies on different dimensions of aid practice and then provide one final comprehensive ranking. We present these results as an illustrative exercise to move the aid discussion forward.


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