Crisis Or Transition In Foreign Aid

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 The wide-ranging essay—most previously unpublished—aim to shed light on the changing political, economic, and regional geographies of aid at the end of the twentieth century.

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.

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.

This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors budgets. The paper presents empirical evidence consistent with theoretical results. These imply that, short of ending donors maximization of relative aid impact, agreements to better coordinate aid allocations are not implementable. Moreover, since policies to increase donor competition in terms of aid effectiveness risk reinforcing relativeness, they may well backfire, as any such reinforcement increases aid fragmentation.

* 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.

Foreign aid is now known more for its failures than its successes, leading to claims in academic and policy circles that foreign aid has outlived its usefulness. Instead of foreseeing the end of foreign, these essays show how it might be restored.

Peter Hjertholm, Editorial Assistant Aid has worked in the past but can be made to work better in the future. In this important new book, leading economists and political scientists, including experienced aid practitioners, re-examine foreign aid. The evolution of development doctrine over the past fifty years is critically investigated, and conventional wisdom and current practice is challenged. As well as offering important new research material, the book opens up new directions for future practice and policy. It will be of vital interest to those working in economics, politics and development studies, as well as to governmental and aid professionals.