PowerPoint Presentation Economic Growth and development in Southeast Asia

Who gives ODA?

• Most ODA (80%) is given in the form of bilateral assistance from one country to another
• Typically through bilateral development agencies e.g. USAID, DFID, JICA, CIDA, SIDA, Saudi Fund for International Development
• Many countries e.g. the U.S. have multiple aid agencies e.g.
• USAID, Millennium Challenge Corp, Depts of Agriculture Defense, Health and Human Services, Census, also Peace Corps
• Some aid provided in cash, but 70-75% is provided in goods (e.g. agriculture products, medicines) and services (technical assistance)
• Big push-back in recent years against “tied aid”, food aid, and use of TA (expensive consultants and travel)
• Many “aid conscious” donors no longer allow tied aid, good in many respects but also problematic given..
• Ongoing shift from pure-development objectives to more commercial interests in defining relationships between rich and poor countries
• Even true e.g. for Norway in terms of its relationship with Vietnam (example)

Net Official Development Assistance (ODA) (USD millions, 2012 – WDI)

ODA donor-country estimates (previous slide) also includes multilateral aid

• Countries provide bilateral (direct) ODA as well as (indirect) aid through multilateral institutions
• Major institutions include
• World Bank, IMF, MIGA and IFC
• UN organizations
• European Union (EU) institutions, including the EC
• Regional banks e.g. AfDB, ABD, IADB
• Different rationales for multilateral aid, but generally
• Less tied to national interests, politics (no longer accept tied aid)
• “whole-sale” provision, lower overhead costs.
• Global harmonization of aid, shared global objectives

World Bank is the largest multilateral aid institution

• Initially the International Bank for Reconstruction and Development (IBRD),
• founded at the Bretton Woods conference in July 1944
• To finance the reconstruction of Europe after WWII
• Shifted to focus on countries outside Europe with the advent of the Marshall Plan (1947), until 1968 focus on building economic infrastructure – e.g. ports, roads, irrigation systems
• 1970s, revised focus on basic needs including education and health
• McNamara introduced focus on poverty
• 1980s, difficult era of structural adjustment, expanded lending to Africa
• 1990s through present
• More diversified lending portfolio, more open processes (in response to harsh criticisms in 1980s), greater focus on environment, social concerns