Aid and Economic Self-Sufficiency - Conceptualizing Self-Sufficiency for Aid Recipient Countries

Description

Donor countries and multilateral organizations may pursue multiple goals with foreign aid, including supporting low-income country development for strategic/security purposes (national security, regional political stability) and for short-and long-term economic interests (market development and access, local and regional market stability). While the literature on the effectiveness of aid in supporting progress on different indicators of country development is inconclusive, donors are interested in evidence that aid funding is not permanent but rather contributes to a process by which recipient countries develop to a point that they are economically self-sufficient.

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Aid and Economic Self-Sufficiency

Donor countries and multilateral organizations may pursue multiple goals with foreign aid, including supporting low-income country development for strategic/security purposes (national security, regional political stability) and for short-and long-term economic interests (market development and access, local and regional market stability). While the literature on the effectiveness of aid in supporting progress on different indicators of country development is inconclusive, donors are interested in evidence that aid funding is not permanent but rather contributes to a process by which recipient countries develop to a point that they are economically self-sufficient.
Other      Added July 3rd, 2018 10:39

Aid and Self-Sufficiency: Case Study – Indonesia

Indonesia is the largest economy in Southeast Asia (World Bank, 2017a) with a GNI per capita of $3,400 in 2016, and has the world’s fourth largest population at more than 260 million (World Bank, 2017b). Classified as a lower middle-income country (LMIC)1 , Indonesia is rich in natural resources and is among the top world exporters of several commodities, including rubber, palm oil, and cocoa (OEC, 2017). It is also a founding member of the Association of Southeast Asian Nations (ASEAN) and a member of the G20 (Hermawan, 2011).
Other      Added July 3rd, 2018 10:41

Aid and Self-Sufficiency: Case Study – Botswana

Botswana is an upper middle-income country with a population of 2.25 million and a GNI per capita of $6,610 (World Bank, 2016a). A number of published sources cite Botswana as a case study in successful development, despite adverse initial conditions, including an arid climate, minimal investment in infrastructure during the colonial period, and high levels of poverty and inequality at independence (Fosu, 2013; Acemoglu & Robinson, 2012; Lewin, 2011; Acemoglu, Johnson, & Robinson, 2002). Since achieving independence in 1966, Botswana has transitioned from one of the poorest countries in Sub-Saharan Africa—with an agricultural economy and a GDP per capita of $84 (World Bank, 2016a; World Bank, 2016b)—to one of the richest, with an average GDP growth rate of five percent per annum over the past ten years (Myers, 2016; World Bank, 2016c).
Other      Added July 3rd, 2018 10:43

Aid and Self-Sufficiency: Case Study - India

India is a lower middle-income country1 with a population of 1.3 billion, a GNI per capita of $1,680, and the world’s seventh largest economy (World Bank, 2016a). It is also the world’s largest democracy (BBC, 2017a), with a multiparty parliamentary system and a robust free press (Pylee, 2003). Since achieving independence from Britain in 1947, India has grown from a low-income South Asian country to the “fastest growing economy in the world” (World Bank, 2017a, n.p.) with a 2016 GDP growth rate of 7.1% (World Bank, 2016a). Life expectancy has increased, from 41 years in 1960 to 68 years in 2015 (World Bank, 2016a), agricultural output has expanded (World Bank, 2016b), and poverty has fallen, from 53.9% of the population living below the $1.90 a day poverty line in 1983 to 21.2% in 2011 (World Bank 2016a).
Other      Added July 3rd, 2018 10:45

Aid and Self-Sufficiency: Case Study—Ghana

Ghana is classified as a lower middle-income country1 , with the eighth largest economy in Sub-Saharan Africa2 and a GNI per capita of $1,380 in 2016 (World Bank, 2017a). 54.7% of Ghana’s estimated 2016 population of 28.2 million lived in urban areas. The majority of the Ghanaian economy is concentrated in the services and industry sectors—roughly 52% and 28% of the country’s GDP respectively (World Bank, 2017a; World Bank, 2017f). Ghana enjoys abundant natural resources, and its major exports include gold, cacao beans, cashews and other nuts, and oil (OECD, 2017). The country experienced a temporary economic downturn from its peak in 2013, but growth has improved since the second half of 2016, thanks in large part to the growth of the mining and petroleum industries (World Bank, 2017d). Despite periods of substantial inflation rate fluctuations, the value of Ghana’s currency—the Ghanaian Cedi (GHS)—has remained relatively stable (between 10 and 20 percent) since 2004 (World Bank, 2017a).
Other      Added July 3rd, 2018 10:48

Aid and Self-Sufficiency: Case Study - Rwanda

Rwanda is a small land-locked country of 11.61 million people in the Great Lakes Region of Africa (World Bank, 2017d). It is the most densely populated country in Africa (Rashidghalam, 2017). With a 2016 GDP per capita of $703, the World Bank classifies Rwanda as a Low Income Country entitled to IDA support (World Bank, 2017e). The World Bank also classifies Rwanda as a Heavily Indebted Poor Country (HIPC) due, in part, to the high levels of public debt that remain despite the use of traditional debt relief mechanisms (World Bank, 2016). The service sector makes up just over half of GDP while the agricultural sector makes up just under a third (World Bank, 2017c)
Other      Added July 3rd, 2018 10:51

Working Itself Out of a Job: USAID and Smart Strategic Transitions

Even before he took office, US Agency for International Development (USAID) Administrator Mark Green affirmed his commitment to the agency’s ultimate goal of working itself out of a job. In line with that objective, Administration Green announced plans to pursue “strategic transitions”—moving select countries that have achieved an advanced level of development to a model of US engagement that relies less on traditional development assistance and more on other forms of cooperation, while still enabling the United States to contribute to sustained development progress and to maintain strong bilateral relationships. Transition is likely to include different phases, including a shift from service delivery to capacity building, eventual drawdown of grant funding, and a prudent reduction in USAID presence, which may include closing a mission or office.
Other      Added July 3rd, 2018 12:30

Measuring and mapping the Journey to self reliance

Self Reliance is a country's ability to plan,finance and implement solutions to solve its own development challenges.In order to one day end the need for foreign assistance,USAID needs to understand how self reliant each of its partner countries is overall as well as where the country's self reliance strengths and challenges are and reorient partnerships accordingly
Other      Added July 3rd, 2018 12:40

Recommendations and Feedback on USAID’s Journey to Self-Reliance Vision

The following recommendations have been prepared at the request of USAID Administrator Mark Green by the Advisory Committee on Voluntary Foreign Aid (ACVFA). ACVFA was established by Presidential directive after World War II to serve as a link between the U.S. Government and private organizations active in humanitarian assistance and development work. USAID is developing a new policy framework that places a strong emphasis on “Furthering Self-Reliance” in the context of his vision to end the need for foreign assistance. ACVFA formed a working group to provide reactions to this emerging framework through a consultative dialogue with USAID. The working group was comprised of a select group of private citizens with deep knowledge and experience in international development.
Other      Added July 5th, 2018 07:10

Measuring U.S.Sustainable Development

Public and private decisionmakers in the 21st century are fashioning sustainable development policies and programs in response to a variety of global concerns that include climate change, resource depletion, economic downturns, high levels of poverty, wasteful settlement and urbanization patterns, and a scarcity of adequate, affordable housing and basic services. They assume that human settlement activity has lasting effects on the well-being of individuals and society and understand that sustainable development is an ongoing process, not a “fixed state of harmony” (Hardi and Zdan, 1997: 9). In their choices of policies and programs, decisionmakers adhere to the so-called Brundtland Commission’s interpretation of sustainable development to improve the human condition to meet current needs without compromising the ability of future generations to meet their needs, an idea refined at the Rio Earth Summit in 1992 and further developed at the Rio +20 Conference in 2012. The Future We Want, the outcome document of the 2012 meeting, defined sustainable development as working for poverty eradication, changing unsustainable patterns of consumption and production, and promoting inclusive and equitable economic growth
Other      Added July 5th, 2018 07:21

Input from the Arab High-level Forum on Sustainable Development to the high-level political forum on sustainable development

The Forum is a high-level regional platform for review and follow-up of implementation of the 2030 Agenda for Sustainable Development in the Arab region (hereafter referred to as the 2030 Agenda). Following on from the success of the three previous sessions, held in Amman in 2014 and 2016 and Manama in 2015, the Doha Declaration on the Implementation of the 2030 Agenda for Sustainable Development, adopted at the 29th Ministerial Session of ESCWA (Doha, 13-15 December 2016), affirmed the Forum’s role as an annual gathering that brings together Arab governments and sustainable development bodies to review national and regional experience and study the mechanics of implementing the 2030 Agenda at national and regional levels.1 The outputs of the Arab Forum will be submitted to the high-level political forum on sustainable development to be held in New York in July every year.
Other      Added July 5th, 2018 07:27

Advisory Committee on Voluntary Foreign Aid

This is also the first ACVFA public meeting since Mark Green was confirmed as Administrator. And needless to say, Mark brings a deep, and a very genuine understanding of this agency, and the job, and we’re thrilled to have him on board. Throughout his career in Congress, and as Ambassador to Tanzania, Mark has demonstrated the capability, and the moral clarity really, to -- that’s critical, I think, to bringing effective -- in being an effective advocate for foreign assistance. Many of you heard me say this, I think maybe the last time we got together, if you were here the last time, and that is so much of the strength in our leadership in foreign development is due to the nonpartisan nature of the support that we enjoy. And, I think Mark’s life-long commitment to that mission illustrates exactly that.
Other      Added July 5th, 2018 07:39

LOCAL SYSTEMS: A FRAMEWORK FOR SUPPORTING SUSTAINED DEVELOPMENT APRIL

The focus on local systems is rooted in the reality that achieving and sustaining any development outcome depends on the contributions of multiple and interconnected actors. Building the capacity of a single actor or strengthening a single relationship is insufficient. Rather, the focus must be on the system as a whole: the actors, their interrelationships and the incentives that guide them. Realizing improved development outcomes emanates from increasing the performance of multiple actors and the effectiveness of their interactions.And sustaining development outcomes depends on the sustainability of the local system— specifically, its built-in durability and adaptability that allows actors and their interrelationships to accommodate shocks and respond to changing circumstances
Other      Added July 5th, 2018 07:44