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Robrecht Renard

The history of development cooperation Hasselt University Interdisciplinary Course North-South ‘An interdisciplinary exploration’ 21 February 2012. Robrecht Renard. Outline. Delivery channels How much aid Donor motivation Aid effectiveness Some major challenges. 1. Delivery channels.

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Robrecht Renard

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  1. The history of development cooperationHasselt University Interdisciplinary Course North-South‘An interdisciplinary exploration’21 February 2012 Robrecht Renard

  2. Outline • Delivery channels • How much aid • Donor motivation • Aid effectiveness • Some major challenges Robrecht Renard

  3. 1. Delivery channels capital market taxes private donations Sources of aid ODA budget Deliverers of aid bilateral aid multilateral aid private aid Robrecht Renard

  4. 2. How much aid Robrecht Renard

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  8. 3. Donor motivation • Individual versus collective • Altruism (citizens) • Warm glow (citizens) • Selfish interests of the “aid industry” (NGOs, consultants) • Political and strategic interests (governments) • Humanitarian versus structural • Disaster relief, medical care • Disaster preparedness, roads, education,… • Technical assistance and conditional budget support Robrecht Renard

  9. 4. Aid effectivenes • Results from project-level evaluations • 1/3-1/3-1/3 rule of thumb: relatively successful • Randomised experiments: aid can be highly effective • Results from macro-econometric research • no or even negative impact of aid • World Bank (1998) Assessing Aid: What Works, What Doesnt, and Why, Oxford University Press • The micro-macro paradox • either the micro results are unreliable • either the macro results are unreliable • Either micro successes are real but do not carry through to macro level because of some negative systemic side effects Robrecht Renard

  10. 4. Some major challenges • Aid and recipient governance failures • Missing feedback loops • Donors in pursuit of too many goals • A multipolar new world order Robrecht Renard

  11. Aid and recipient governance failures • Three mechanisms to help the poor: • Trickle down from economic growth • Pro-poor growth strategies and redistribution • International solidarity • Of three, international solidarity is least effective • Aid increasingly becomes an instrument to help countries where growth and redistribution are not happening because of government failures Robrecht Renard

  12. Missing feedback loop • Aid is not an entitlement, and accountability is mainly towards citizens in the north who are very poorly informed • This makes public opinion easily manipulated and volatile • Gives undue importance to pressure groups • This suggests an increased role for civil society (media, advocacy groups) provided • They are well informed and unbiased • They do not mix advocacy and aid delivery • There is also a crucial role for Parliament Robrecht Renard

  13. Donors in pursuit of too many goals • What do we mean by development? • Socio-economic development • Individual and political liberty • Global public goods • climate change • distress migration • drug trafficking • contagious diseases,… • Non-developmental selfish donor interests • commercial interests (aid tying) • geo-political interests • security interests Robrecht Renard

  14. A multipolar new world order • Development cooperation is an instrument of foreign policy: “smart” power? • The first 30 years (since 1960) the Cold War was a major motivation for aid • For the next 10 years there was one superpower (US) • The beginning of the 21st century is characterised by a multipolar world order without clear leadership • So how will we reach an agreement about burden sharing and the donor harmonisation Robrecht Renard

  15. Thank you robrecht.renard@ua.ac.be http://www.ua.ac.be/dev/bos

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