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6. German Aid Policy
The internal destabilization of many poor countries that accompanied the end of the Cold War and the general failure of structural adjustment programs have changed the nature and allotment of foreign aid around the world. Major donors of foreign aid such as the United States, Japan, and the European Union have been shifting their geographical priorities in allocating aid, as well as their project emphasis, since the end of the Cold War. In addition, multilateral aid agencies—the World Bank, the United Nations, and the Interna­tional Monetary Fund—are attempting to redress past failures of aid and revamp policies and priorities. Moreover, aid recipients in Africa, the Middle East, Asia, Eastern Europe, the former Soviet republics, and Central America are establishing priorities of their own and evaluating the success and failure of past aid programs. This volume stands out in the literature on foreign aid because it includes contributions from eight policy representatives from a range of important donor and recipient countries—the United States, Japan, the Netherlands, Bolivia, Egypt, Bangladesh, El Salvador, and Poland. Timely in its assessment of the crisis and the transition in the foreign aid regime, the book pro­vides a view from inside the policy process and im­parts a researcher's perspective on the changing pri­orities for donors and recipients. The wide-ranging essay—most previously unpublished—aim to shed light on the changing political, economic, and regional geographies of aid at the end of the twentieth century.
This book investigates the geopoliticisation of foreign aid in recent years, against a background of global overarching crises such as climate change, conflict, Covid-19, economic crisis, energy shortages and migration. Foreign aid has historically been understood as assisting both with the development objectives of the recipients and with the trade and geopolitical interests of the donors. In the first decades of the 21st century, however, this balance has been shifted by a series of complex global challenges. This book argues that donors have now moved towards framing aid as a geopolitical instrument, wherein aid can be given or withheld based on power or political intent, thus imposing the donor’s specific values and norms. This book provides an in-depth analysis of this weaponisation of foreign aid within a framework of global disruption and ultimately concludes that the world is at a tipping point towards a new socio-political world order. Asking important questions about the power dynamics at play within the aid sector, this book will be an important read for researchers across development studies, political science, international relations and global affairs.
* A lucid primer on the complex topic of foreign aid written for a wide readership including introductory level students* Spells out the players in development assistance: the IMF, World Bank, United Nations, governments and NGOs* Differing perspectives on the timeless "aid debate" offer clarification on the subject of international aidIn a political climate where international assistance is under attack, it has never been more important that the general public understand the debate. "Players and Issues in International Aid" is a one-stop source of vital information on the politics, players, and issues surrounding international development assistance.
Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.
A response to the pressing need to address and clarify the substantial ambiguity within current literature, this edited volume aims to deepen readers’ understanding of the impact of foreign aid on development outcomes based on the latest findings in research over the past decade. Foreign aid has long been seen as one of two extremes: either beneficial or damaging, a blessing or a curse. Consequently, many readers perceive aid’s effectiveness based on the work of scholars who are assessing the impact of aid from one of two antithetical perspectives. This book takes a different approach, shedding light on recent research that can deepen our understanding of the complex relationship between aid and its aftereffects. Drawing from an extensive set of studies that have explored micro and macro impacts of foreign aid for recipient nations, chapter authors highlight more layered and nuanced findings, with a focus on donor characteristics, political motives, and an evaluation of aid projects and their effectiveness, including the differential impact based on type of aid. This volume is the first of its kind to unpack aid as a complex rather than a unitary concept and explore the wide areas of grey that have long enshrouded foreign aid.
A Brookings Institution Press and the National Academy of Public Administration publication Even after years of receiving considerable foreign aid, Haiti remains an impoverished, tremendously fragile state. Over a span of ten years, the United States spent over $4 billion in aid to Haiti, yet the average Haitian still has to survive on one dollar a day. Why has assistance been so ineffectual, and what can we learn from Haiti's plight about foreign aid in general? Haiti in the Balance tackles those questions by analyzing nearly twenty years of Haitian history, politics, and foreign relations. Terry Buss and his colleagues at the National Academy on Public Administration found a general failure to reinforce the capacity of institutions at all levels of Haitian government. Building up that system of institutions appears to be a necessary precursor to a nation using foreign aid in the most effective manner. Such an effort demands improved security, a more professional (and less corrupt) bureaucracy, and eventually decentralization and perhaps even some privatization. Different levels of government must be willing to learn how best to work with one another: according to Buss, "Haitian governments seemed consumed by politics, rather than good governance." People still matter, and so does administration. Until we learn that lesson, even the most generous foreign aid will not fulfill its intent.
Foreign aid is one of the few topics in the development discourse with such an uninterrupted, yet volatile history in terms of interest and attention from academics, policymakers, and practitioners alike. Does aid work in promoting growth and reducing poverty in the developing world? Will a new 'big push' approach accelerate progress towards the Millennium Development Goals or will another opportunity be missed? Can the lessons of almost half a century of aid giving be learnt? These are truly important questions in view of the emerging new landscape in foreign aid and recent developments related to the global financial crisis, which are expected to have far reaching implications for both donors and recipients engaged in this area. Against this shifting aid landscape, there is a pressing need to evaluate progress to date and shed new light on emerging issues and agendas. This volume brings together leading aid experts to review the progress achieved so far, identify the challenges ahead, and discuss the emerging policy agenda in foreign aid. A central conclusion of this important and timely volume is that, since development aid remains crucial for many developing countries, a huge effort is needed from both donors and aid recipients to overcome the inefficiencies and make aid work better for poor people. After all, as global citizens, we have a moral obligation to do the best we can to lift people out of poverty in the developing world. The findings of this book will be of considerable interest to professionals and policymakers engaged in policy reforms in foreign aid, and provide an essential one-stop reference for students of development, international finance, and economics.
"This book investigates the geo-politicization of foreign aid in recent years, against a background of global overarching crises such as climate change, conflict, COVID-19, economic crisis, energy shortages and migration. Foreign aid has historically been understood as assisting both with the development objectives of the recipients, and with the trade and geopolitical interests of the donors. In the first decades of the 21st Century, however, this balance has been shifted by a series of complex global challenges. The book argues that donors have now moved towards framing aid as a geopolitical instrument, wherein aid can be given or withheld based on power or political intent, thus imposing the donor's specific values and norms. The book provides an in-depth analysis of this weaponization of foreign aid within a framework of global disruption and ultimately concludes that the world is at a tipping point towards a new socio-political world order. Asking important questions about the power dynamics at play within the aid sector, this book will be an important read for researchers across development studies, political science, international relations, and global affairs"--