Monday, November 28, 2011

Emerging Donors Changing Foreign Assistance

In a new Center for Global Development white paper, a look is taken at the scale and scope of emerging donors, many of which are developing economies themselves. On the basis of a survey of the literature, CGD find that estimates of annual aid flows from new donors (so-called non-DAC donors) vary greatly and are somewhere between $11 billion and $41.7 billion, or 8 and 31 percent of global gross Official Development Assistance (ODA). 

It is found that new donors are not a monolithic group but instead represent three distinct models of aid delivery, which are described as the OECD Development Assistance Committee (DAC) Model, the Arab Model and the Southern Model. 

While there is seen the need to increase transparency and accountability of aid flows across these delivery models, the authors Julie Walz and Vijaya Ramachandran do not see a convergence to the DAC model. Rather, emerging donors may follow different paths, in accordance with their own traditions and standards. 

They argue that encouraging aid transparency, especially reporting data on project-level assistance, must be the core focus of the aid community. To engage the non-DAC donors, the forum for international aid coordination might need to be moved away from the OECD-DAC platform; DAC could instead serve as one donor caucus within a larger international system of aid reporting.

Their candidates for this independent body include the U.N. Development Cooperation Forum and the International Aid Transparency Initiative.

Read the 30 page paper here.

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