L17: Overseas Development Aid PDF

**[L17: Overseas Development Aid]** - ODA developed after WW2 - 'Flow of funds from donors to recipient countries with the main objective as the promotion of the economic development and welfare of developing countries.' - Official means undertaken by official national sectors -...

**[L17: Overseas Development Aid]** - ODA developed after WW2 - 'Flow of funds from donors to recipient countries with the main objective as the promotion of the economic development and welfare of developing countries.' - Official means undertaken by official national sectors - Loans must be somewhat concessional in nature - Countries receive aid from many places - Bilateral donors national governments - Multilateral organisations an international organisation whose membership comprises member governments who collectively govern and fund the organisation e.g. WHO, UN, UNICEF, development banks (such as world bank) - Non-Governmental Organisations (NGOs) e.g. Oxfam, Save the Children - Global funds and alliances - Global health initiatives - These global initiatives bring co-funding - Coordination of the ODA - Within a country, across departments and organisations - Between donor countries and with recipient countries - Organisation for Economic Cooperation and Development (OECD) and Development Assistance Committee (DAC) - DAC shapes the international development agenda and creates a list of recipients for the ODA - 1970 = 0.7% ODA (GNI target was first agreed by UN resolution, member countries asked to contribute 0.7% of GNI to developing countries) - Why do countries provide aid? - Increase economic growth and reduce poverty in recipient countries and regions - Alleviate suffering/humanitarian imperative - Improve trade opportunities (new markets and materials) - Geopolitical support former colonies - Improve domestic security/safety - Gain kudos/favour with international and domestic circles - Monitor and reduce health threats to donor population (influenza and pandemics) - Complex to measure if aid is effective as it's hard to decipher aims, whats included, intended impact and actual use - Two most widely cited aid goals economic growth and to reduce poverty in LMICs - Challenges for ODA - Dependence on donor funding may reduce want to develop domestic funding channels/trade - Donor influence on political processes - 'Authoritarian paternalism' from donors - Lack of consistent funds impacted by economic crisis or conflict - Fragmentation -- too many donors and projects at once - More than 200 bilateral and multilateral organisations channeling ODA to developing countries - Lack of harmonisation between donors and also in terms of fitting with recipient country's priorities - Structural adjustments such as anti-corruption needs to be in place - Abuse of funds, distorted incentives, warped political decisions