Delivering Aid Differently

Delivering Aid Differently: Lessons from the Field

Wolfgang Fengler
Homi Kharas
Copyright Date: 2010
Pages: 286
https://www.jstor.org/stable/10.7864/j.ctt127wks
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  • Book Info
    Delivering Aid Differently
    Book Description:

    We live in a new reality of aid. Gone is the traditional bilateral relationship, the old-fashioned mode of delivering aid, and the perception of the third world as a homogenous block of poor countries in the south.Delivering Aid Differentlydescribes the new realities of a $200 billion aid industry that has overtaken this traditional model of development assistance.

    As the title suggests, aid must now be delivered differently. Here, case study authors consider the results of aid in their own countries, highlighting field-based lessons on how aid works on the ground, while focusing on problems in current aid delivery and on promising approaches to resolving these problems.

    Contributors include Cut Dian Agustina (World Bank), Getnet Alemu (College of Development Studies, Addis Ababa University), Rustam Aminjanov (NAMO Consulting), Ek Chanboreth and Sok Hach (Economic Institute of Cambodia), Firuz Kataev and Matin Kholmatov (NAMO Consulting), Johannes F. Linn (Wolfensohn Center for Development at Brookings), Abdul Malik (World Bank, South Asia), Harry Masyrafah and Jock M. J. A. McKeon (World Bank, Aceh), Francis M. Mwega (Department of Economics, University of Nairobi), Rebecca Winthrop (Center for Universal Education at Brookings), Ahmad Zaki Fahmi (World Bank)

    eISBN: 978-0-8157-0481-2
    Subjects: Business, Political Science

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. Foreword
    (pp. vii-viii)
    Kemal Dervis

    We live in a new reality of aid. Gone is the traditional bilateral relationship, the old-fashioned mode of delivering aid, and the perception of a “third world” as a homogenous block of poor countries in the south. A rapidly developing global economy has changed the global aid architecture in three fundamental ways.

    First, the field of donors has become more diverse. Despite an increase in total aid, the share of aid from OECD donors is declining relative to that of new donors, such as the “new bilaterals” led by China and of the growing NGO sector. These new donors now...

  4. Acknowledgments
    (pp. ix-xii)
    Wolfgang Fengler and Homi Kharas
  5. 1 Overview: Delivering Aid Differently
    (pp. 1-42)
    WOLFGANG FENGLER and HOMI KHARAS

    Since 1960, $3.2 trillion of aid has been delivered from rich countries to poor countries, mainly through a handful of bilateral and multilateral institutions.¹ Recently, this traditional model of development assistance has been overtaken by a more complex reality of aid in response to new circumstances, new international players, and new instruments for delivery. The changed circumstances reflect the fact that developing countries are no longer a homogeneous group of “poor” countries but instead are highly differentiated in their capabilities and needs.

    Meanwhile, the new international donors include more bilateral governments, even some, like China, that are still characterized as...

  6. 2 Aceh, Indonesia
    (pp. 43-62)
    HARRY MASYRAFAH and JOCK M. J. A. MCKEON

    The earthquake and the subsequent devastating tsunami that hit Nanggroe Aceh Darussalam (Aceh) on the island of Sumatra, Indonesia, on December 26, 2004, triggered a huge outpouring of compassion and generosity from around the world. This led to the province playing host to the largest reconstruction project in the developing world at the time.

    The reconstruction effort coincided with a resurgence of economic growth and confidence in Indonesia, during which time the country returned to middle-income statuss—a status lost in the Asian financial crisis of 1998. This meant that Indonesia could respond rather differently from other smaller and poorer...

  7. 3 Cambodia
    (pp. 63-84)
    CHANBORETH EK and HACH SOK

    Cambodia is one of the poorest countries in Asia and relies heavily on aid from development partners to finance its social and economic development programs.¹ Although the country escaped from civil unrest in 1991 and has enjoyed remarkable economic growth in recent years, it remains a low-income country, and development assistance from bilateral, multilateral, and private donors (such as nongovernmental organizations) continues to play a key role in Cambodia’s development process.

    Cambodia has experienced high annual economic growth during the past few years. Its GDP growth rate was estimated at 10 percent in 2007 and 5 percent in 2008.² However,...

  8. 4 Ethiopia
    (pp. 85-106)
    GETNET ALEMU

    Foreign aid has played a major role in Ethiopia’s development efforts since the end of World War II. It has been instrumental in bridging the country’s savings-investment and foreign exchange gaps.¹ Its importance as a source of financing for the development of capacity building (human capital, administrative capacity, institutional building, and policy reforms) is also unquestionable. Thus increasing efforts were made to mobilize foreign aid during the last two Ethiopian regimes. Following the change in political regime in 1991 and the adoption of the structural adjustment program in 1992-93, in particular, the country has enjoyed a significant amount of aid....

  9. 5 Kenya
    (pp. 107-128)
    FRANCIS M. MWEGA

    Kenya is an example of a traditional aid recipient country. The scaling up of aid has been modest, and Kenya’s main challenge has been the volatility of aid. With the exception of rapidly increasing aid from China, new donors are emerging only slowly. In fact since 2002, when a new government was elected and overall aid to Kenya increased, aid financed by NGOs has fallen. As this chapter shows, foreign aid to Kenya is highly volatile; it is also fragmented, albeit to a lesser degree. High volatility has imposed significant costs to aid effectiveness. This chapter focuses on the three...

  10. 6 Pakistan
    (pp. 129-164)
    ABDUL MALIK

    Pakistan has historically received large volumes of aid in support of its development into a lower-middle-income country. Yet it has also faced the increasingly difficult task of aid coordination. In 2007 Pakistan received more than $2.2 billion in official development assistance (ODA), ranking the country as the sixth-largest recipient of official aid in the world. This overall sum, however, amounted to only 1.5 percent of gross domestic income, translating into a per capita aid of $14—much smaller than the amount received by countries with similar levels of income, such as Sudan ($55), Kenya ($34), and Vietnam ($29).

    Moreover, aid...

  11. 7 Tajikistan
    (pp. 165-186)
    RUSTAM AMINJANOV, MATIN KHOLMATOV and FIRUZ KATAEV

    Development partners stood by the side of Tajikistan’s government through the difficult period of conflict and postconflict reconstruction that followed Tajikistan’s independence in 1991, and they have been quite generous with their limited resources. Tajikistan is the poorest country among the former Soviet states and has little capacity to deal with the profound challenges it faces. Thus consistent and efficient development assistance, both financial and technical, is vital if Tajikistan is to achieve sustainable development.

    In recent years, the government has led several efforts to develop a clear strategic direction and concrete plans for economic development. The chief products of...

  12. 8 Joint Country Assistance Strategies
    (pp. 187-214)
    JOHANNES F. LINN

    Fragmentation in aid architecture and aid delivery is a well-recognized challenge.¹ The question of what to do about fragmentation has no obvious answers. The Paris Declaration on Aid Effectiveness represents an effort by donor and recipient governments to harmonize their cooperation in a comprehensive manner, with guidelines and targets that aim to improve the effectiveness of aid.

    One of the aspects not addressed in the Paris Declaration is how a comprehensive approach to aid coordination at the international level would be implemented at the country level. The Paris Declaration aims to improve specific modalities of cooperation (such as the use...

  13. 9 Aid Information Systems
    (pp. 215-240)
    CUT DIAN AGUSTINA and AHMAD ZAKI FAHMI

    All donors—public and private—of aid programs have a strong interest in ensuring that their resources are well spent. The issue of making aid more effective has started to receive significantly more attention in recent years, as enshrined in the 2005 Paris Declaration on Aid Effectiveness. Central messages such as harmonization, accountability, and transparency were reinforced three years later in the Accra Agenda for Action. The statement for the launching of coordinated efforts such as the International Aid Transparency Initiative also strongly endorsed the message of the Accra Agenda, to “support information systems for managing aid.”¹ Information systems, particularly...

  14. 10 Learning from Humanitarian Aid
    (pp. 241-270)
    REBECCA WINTHROP

    In the spring of 1994, in a small mountainous country in East Africa, a tragedy of unfathomable proportions unfolded. In thirteen weeks at least half a million people were killed in the Rwandan genocide.¹ The international community, including the humanitarian aid organizations dispatched to assist fleeing Rwandan refugees, did not do all it could have to appropriately stop and respond to the crisis. In some cases, humanitarian interventions actually made things worse for already badly suffering Rwandans. Well-intentioned but poorly coordinated and badly designed interventions from some of the numerous volunteers and nonprofit groups were one source for this in...

  15. Contributors
    (pp. 271-272)
  16. Index
    (pp. 273-286)
  17. Back Matter
    (pp. 287)