Poverty Alleviation And Poverty Of Aid

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.

June 1998 Aid spurs growth and poverty reduction only in a good policy environment so it should be targeted to countries that have improved their economic policy. That aid tends to be allocated relatively indiscriminately is one factor that undermines its potential impact. Spurring growth in the developing world is one stated objective of foreign aid. Another, more commonly cited, objective is reducing poverty. Generally poverty reduction and growth go hand in hand, but could aid mitigate poverty without measurably affecting growth? Burnside and Dollar examine how foreign aid affects infant mortality-an important social indicator that provides indirect evidence that the benefits of development are reaching people everywhere. They conclude that in developing countries with weak economic management-evidenced by poor property rights, high levels of corruption, closed trade regimes, and macroeconomic instability-there is no relationship between aid and the change in infant mortality. In distorted environments, development projects promoted by donors tend to fail. And aid resources are typically fungible, so the aid does not in fact finance these projects. Aid finances the whole public sector at the margin, which is why the quality of management is the key to effective assistance. A government that cannot put effective development policies in place is unlikely to oversee the effective use of foreign aid. On the other hand, there is a relationship between aid and a change in infant mortality when the recipient country has relatively good management. When management is good, additional aid worth 1 percent of GDP has a powerful effect, reducing infant mortality by 0.9 percent. In other words, aid spurs growth and improvements in social indicators only in a good policy environment. These findings strengthen the case for targeting foreign aid to countries that have improved their economic policy. But after controlling for per capita income and population, there has been almost no relationship between countries' economic policies and the amount of aid they get. The relatively indiscriminate allocation of assistance is one factor undermining the potential impact of aid. This paper-a product of Macroeconomics and Growth, Development Research Group-is part of a larger effort in the group to examine aid effectiveness. The study was funded by the Bank's Research Support Budget under the research project Economic Policies and the Effectiveness of Foreign Aid (RPO 681-70). The authors may be contacted at [email protected] or [email protected].

Zambia, a once prosperous African country, now has 73 per cent of its people below the poverty line and by the early 1990s, the country was included on the list of the least developed countries. Despite significant aid volumes and structural reforms, the country is getting deeper and deeper into poverty. What is the missing link between aid and positive change? Is the problem mainly that the volume of aid is not sufficient and, as is often heard, more of it would make a difference? Has the sluggish social and economic progress in Zambia been appropriately diagnosed and correct remedies and strategies prescribed? This book attempts to address these and related questions.

Every day, we are barraged by statistics, images, and emotional messages that present poverty as a problem to be quantified, managed, and solved. Global generations present the poor as a heterogeneous group and stress globalized solutions to the problem of poverty. Governing the Poor exposes the ways in which such generalized descriptions and quantifications marginalize the poor and their experiences.

This book, based on the study of 33 projects in India aided by six European donors - The European Commission, Denmark, Germany, Netherlands, Sweden and United Kingdom - seeks to examine the aid programmes from the perspective of poverty reduction. It conceptualises poverty alleviation as a multi-dimensional phenomenon which involves changes in livelihoods, resources, knowledge and rights, as also it analyses the manner and means through which the donors aid programmes are organised and implemented.

Every day, we are barraged by statistics, images, and emotional messages that present poverty as a problem to be quantified, managed, and solved. Global generations present the poor as a heterogeneous group and stress globalized solutions to the problem of poverty. Governing the Poor exposes the ways in which such generalized descriptions and quantifications marginalize the poor and their experiences.

The UN Declaration on Human Rights has been fifty years old. A moment is needed to take stock and to look at the deficits which still exist in terms of human rights half a century later. The declaration of 1948 contains a comprehensive list of political, economic, social and cultural rights and aims at the protection of the freedom, equality, and human dignity of all human beings, irrespective of their race, gender, language or religion. Never before in history had there been such a far-reaching and solemn undertaking to protect each and every individual from all forms of oppression and deprivation. Two treaties adopted by the UN General Assembly in 1966 translate the ideas of the Human Rights Declaration into binding international law, and a High Commissioner for Human Rights, an office created as a result of the UN Human Rights Conference in Vienna in 1993, has been put in charge of monitoring the human rights situation and coordinate UN action on it. Numerous human rights NGOs all over the world, most important among them Amnesty International, have established themselves as additional watchdogs to guard against human rights violations.

NOW IN ITS SIXTH ANNUAL EDITION, The Reality of Aid has for the first time analysed the 'fair share' of bilateral aid for basic social services basic education, basic health, reproductive health, nutrition, clean water and sanitation - that should come from each donor; an analysis which shows only two donors meeting their fair share and the G7 nations (Canada, France, Germany, Italy, Japan, UK, US) falling behind by over US$5 billion. This year and next, The Reality of Aid focuses on basic education, as a right and not a privilege, and its role in development cooperation and poverty elimination. A key feature of The Reality of Aid 1998/1999 is the ten chapters offering analysis of development cooperation from the perspective of southern NGOs. Many of these focus on basic education and raise issues around transparency, gender and civil society. 'If policies were programmes and promises were dollars, The Reality of Aid could report great progress on the road to eradicating global poverty this year. But at a time when donors acknowledge that ending poverty is possible, it seems that commitments are being offered instead of resources and real change.' From the Summary Part I presents a useful Summary, highlighting the steps that donors could take now to make progress towards poverty eradication, and reviews the trends in development cooperation, debt relief measures targeted towards the new millennium and commitment to the goal of ensuring basic education for all. Part II gives a full report on the overseas aid performance of OECD country aid donors and the European Union over the last year. Part III sets out a Southern perspective on development cooperation. Part IV provides 'at a glance' comparisons of donors' aid outlook and commitment to development cooperation in the 21st Century, poverty eradication, gender and public support. Part V contains handy reference material. Throughout the book, information is presented in easily interpreted diagrams and graphs. The Reality of Aid has established itself as a unique source of independent evaluation and comment on aid policies and development. It is indispensable for all in the field, whether in the official or voluntary sectors. 'Indispensable ... it gives you most of the hard facts you need to know about the major issues' New Internationalist 'The most comprehensive and rigorous independent analysis of the aid and development policies of the world's wealthiest nations ... Essential reading' Charity World 'The Reality of Aid remains an essential purchase by the libraries of development institutions and an invaluable reference for development practitioners' Development & Change 'A reliable 'watchdog' for anyone interested in this important aspect of international relations' ORBIT 'An accessible reference ... [it] encompasses many key issues and stimulates further research' Commonwealth & Comparative Politics Originally published in 1998