Official Development Aid: Trends of the Last Decade

1009
DOI: 10.20542/0131-2227-2019-63-9-86-92

A. Morozkina (a.k.morozkina@gmail.com),
Financial Research Institute, Economic Expert Group, 15/13, bld. 5, Petrovka Str., Moscow, 107031, Russian Federation 

Abstract. Active growth of development assistance during the last decade gave a birth to the concept of increasing concentration of donor’s attention on developing countries’ needs and fairer allocation of development aid. Based on the OECD DAC data from 2008 to 2017 the article analyzes the structure of official development aid by donors, geographical distribution, instruments, channels and forms of development aid after the crisis of 2008–2009 in order to test the soundness of this concept. First, analysis of structure of aid by donors shows increasing role of new donors, including Arab countries, and private donors. Giving unpredictability of Arab aid, this trend may not be sustainable. Second, examination of main recipient groups demonstrates reduction of share of Official Development Assistance (ODA) directed to the least developed countries, although concentration on the 8 largest recipients decreased. Third, study of the instruments shows decrease of grants’ share in ODA, and still large share of grants allocated to uppermiidle income recipients. Although DAC countries made efforts aimed at stimulation of disbursement of grants and softening of loan terms, current steps are not enough to change the trend. Fourth, analysis of forms of ODA demonstrates increasing share of in-donor ODA expenditures, mainly due to growing refugees costs. Also it shows that growing share of ODA allocated to the least developed countries, highlighted by the previous researches, is to a large extent associated with humanitarian aid and debt actions, and not with the aid aimed at financing development. Furthermore, expenditures on development measured by country programmable aid (CPA) decreases during the last decade. This is a clear indicator of decreasing donors’ attention to the needs of recipient countries. Thus, comparison of directions and structure of aid before and after financial crisis supports the hypothesis of donors’ selfishness. There is an urgent need to create additional incentives for distributing the development assistance in favor of the most needy countries

Keywords: official development assistance (ODA), bilateral aid, OECD, Development Assistance Committee 


REFERENCES

1. Bartenev V.I., Glazunova E.N. Sodeistvie mezhdunarodnomu razvitiyu. Kurs lektsii [International development assistance. series of lectures]. Moscow, Vsemirnyi bank, 2012. 409 p.

2. Hoeffler A., Outram V. Need, Merit, or Self-Interest – what Determines the Allocation of Aid? Review of Development Economics, 2011, vol. 15, no. 2, pp. 237-250. DOI:10.1111/j.1467-9361.2011.00605.x

3. Bermeo S.B. Aid Allocation and Targeted Development in an Increasingly Connected World. International Organization, 2017, vol. 71, no. 4, pp. 735-766. DOI:10.1017/S0020818317000315

4. Bodenstein T. Kemmerling A. A Paradox of Redistribution in International Aid? The Determinants of Poverty-Oriented Development Assistance. World Development, 2015, vol. 76, pp. 359-369. DOI:10.1016/j.worlddev.2015.08.001

5. Civelli A., Horowitz A.W., Teixeira A. Is Foreign Aid Motivated by Altruism or Self-Interest? A Theoretical Model and Empirical Test. SSRN Electronic Journal, 2014. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2390448 (accessed 27.02.2019).

6. Bickenbach F., Mbelu A., Nunnenkamp P. Is Foreign Aid Concentrated Increasingly on Needy and Deserving Recipient Countries? An Analysis of Theil Indices, 1995–2015. World Development, 2019, vol. 115, pp. 1-16. DOI:10.1016/j.worlddev.2018.11.003

7. McGillivray M., Clarke M. Fairness in the International Allocation of Development Aid. The World Economy, 2018, vol. 41, no. 6, pp. 1068-1087. DOI:10.1111/twec.12636

8. OECD–DAC Development Brief: where Do We Stand on the Aid Orphans? Available at: https://www.oecd.org/dac/aidarchitecture/Aid%20Orphans%20Development%20Brief.pdf (accessed 27.02.2019).

9. Biscaye P.E., Reynolds T.W., Anderson C.L. Relative Effectiveness of Bilateral and Multilateral Aid on Development Outcomes. Review of Development Economics, 2017, vol. 21, no. 4, pp. 1425-1447. DOI:10.1111/rode.12303

10. Development Co-operation Report 2018: Joining Forces to Leave No One Behind. Paris, OECD Publishing, 2018. 209 p. Available at: https://doi.org/10.1787/dcr-2018-en (accessed 27.02.2019).

11. The World’s First “Humanitarian Impact Bond” Lunched to Transform Financing of Aid in Conflict-hit Countries. Available at: https://www.icrc.org/en/document/worlds-first-humanitarian-impact-bond-launched-transform-financing-aid-conflict-hit (accessed 27.02.2019).

12. Moyo D. Dead Aid: Why Aid Is not Working and How There Is a Better Way for Africa. New York, Farrar, Straus and Giroux, 2009. 188 p. 


Registered in System SCIENCE INDEX

For citation:
Morozkina A. Official Development Aid: Trends of the Last Decade. World Eonomy and International Relations, 2019, vol. 63, no. 9, pp. 86-92. https://doi.org/10.20542/0131-2227-2019-63-9-86-92



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 7
Topical Themes of the Issue:
  • The Supporting Structure of Global Security
  • Institutional Features of the Fourth Energy Transition
  • The Evolution of Modern German Christian Democracy
  • The Monarchies of the Persian Gulf and Central Asia
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.