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Robrecht Renard

The history of development cooperation Hasselt University Course North -South - an Interdisciplinary E xploration 19 February 2013. Robrecht Renard. Outline. The history of aid in graphs Evolving delivery mechanisms Aid effectiveness and efficiency

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Robrecht Renard

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  1. The history of development cooperationHasselt University Course North-South - an InterdisciplinaryExploration 19 February 2013 Robrecht Renard

  2. Outline • The history of aid in graphs • Evolving delivery mechanisms • Aideffectiveness and efficiency • The changingpolitics of aid Robrecht Renard

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  7. 2. Delivery mechanisms • The delivery channels of public aid are very lengthy and fraught with challenges: • they involve both the governments of the donor country and of the recipient country • the emphasis is on structural measures rather than on direct transfers to the poor • For the first time, the alternative of large-scale private-to-private transfers can be imagined: • direct support from Northern to Southern citizens • intermediation through eBay-type of “market” organisation • payment delivery through cell phones • importance of electronic identity cards Robrecht Renard

  8. 2. Delivery mechanisms • There are howeverpowerfulargumentsforinvolvinggovernments in the North: • missing feedback loop • warm glow • free riding • Andgovernments in the South are key actors • There are alsoargumentsagainstaidfrom and to the public sector: • commercial and geo-political donor interests • notallrecipientgovernments are interested in development Robrecht Renard

  9. 3. Aid effectiveness • 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: • World Bank (1998) Assessing Aid: What Works, What Doesnt, and Why, Oxford University Press • conflicting views from more recent research • The micro-macro paradox: • either the micro results are unreliable • or the macro results are unreliable • or micro successes are real but do not carry through to macro level because of some negative systemic side effects Robrecht Renard

  10. 3. Aid efficiency • Aid is leastefficient of threemechanismsto help the poor: • trickle down fromeconomicgrowth • Pro-poorgrowthstrategies and redistribution • internationalsolidarity • Aidto the poor or topoorcountries? • Aidwillincreasingly have toconcentrate on poor fragile countrieswheregrowth and redistribution are not (yet) happening because of governmentfailures • “Aid is betterthanoil” (Professor Paul Collier, Oxford) Robrecht Renard

  11. 4. The changingpolitics of aid • ODA has survived the disappearance of twopowerfulexternal drivers: • post-colonialguilt • the Cold War • The 21st century is characterisedby a multipolarworld order without a neatrich-poordivide • donor coordinationbecomes more difficult • Global public goodsmaybecome the major rationale forcontinuedaid • the relationwithclimate change financewillbekey Robrecht Renard

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

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