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Thirty percent of foreign development aid is channeled through NGOs or community-based organizations to improve service delivery to the poor, build social capital, and establish democracy in developing nations. However, growing evidence suggests that aid often erodes, rather than promotes, cooperation within developing nations. This book presents a rare, micro level account of the complex decision-making processes that bring individuals together to form collective-action platforms. It then examines why aid often breaks down the very institutions for collective action that it aims to promote. Breakdown in Pakistan identifies concrete measures to check the erosion of cooperation in foreign aid scenarios. Pakistan is one of the largest recipients of international development aid, and therefore the empirical details presented are particularly relevant for policy. The book's argument is equally applicable to a number of other developing countries, and has important implications for recent discussions within the field of economics.

U.S. Foreign Assistance to Pakistan

United States. Congress. Senate. Committee on Foreign Relations. Subcommittee on International Development and Foreign Assistance, Economic Affairs, and International Environmental Protection

Published: 2008

Total Pages: 76


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Pakistan has received more than $20 billion in external development assistance but has made little evident improvement in its social indicators. So Much Aid, So Little Development offers a fresh explanation for this outcome. The author, Samia Altaf, a physician and public health specialist, follows one major initiative, the Social Action Program developed by the Pakistani government in 1992 and funded by the World Bank to the tune of hundreds of millions of dollars. In an engrossing account that reads almost like a novel, at times hilarious, at others heartbreaking, she tells the story of the program’s shortcomings through a series of eyewitness vignettes. She begins with planning meetings in Islamabad, moves through layer after layer of the Pakistani bureaucracy down to the village health trainee, and then returns to Washington for the evaluation. At every stage, she finds skewed incentives, misplaced priorities, and inappropriate designs diverting the project from its original intentions and ambitions. In the process, Altaf introduces into the development conversation the human dimension that most frameworks have neglected to their detriment.
Aid effectiveness has emerged as an intensely debated issue amongst policy makers, donors, development practitioners, civil society and academics during the past decade. This debate revolves around one important question: does official development assistance complement, duplicate or disregard the local resource endowment in offering support to recipient economies? This book draws on Pakistan’s experience in responding to this question with a diverse range of examples. It focuses on a central idea: no aid effectiveness without an effective receiving mechanism. Pakistan is among the top aid recipient countries in the developing economies. It was a shining model in the sixties and it ranks among the highly underperforming countries after the new millennium. This book offers an insight into the dynamics of success and failure of Pakistan in availing foreign financial and technical assistance for human development and poverty alleviation. It draws on field experiences to present case studies on water, shelter, health, education, and health and safety at work to identify the causes and consequences of aid in relation to social reality. Findings relate to developing economies and would be of interest to a wide range of individuals within the development sector.