Development Assistance from the South: Comparative Analysis of Chinese and Indian to Ethiopia

Abstract

China and India, as re-emerging donors, are not new to Ethiopia and Africa. Both countries have been providing aid to Ethiopia since Emperor Haille Sillasie’s time and to Africa since the end of colonial period, at least as long as the West. However, until recently the aid flow from both countries was very minimal, which is unlike the aid from western countries. Development assistances from these two countries also have similarities in some important and inter-related respects. Both countries give monetary and non-monetary forms of assistance; both countries are also motivated by a combination of strategic, political interests and mutual benefits with commercial intent. In this regard, they are similar to traditional western donors in that their aid practices are tied with some conditionalities—equipment, companies and labour as well as services. Yet neither country has conditions on governance, democracy and human rights. Meanwhile, both China and India have valuable contributions to make towards Ethiopia’s development in the spirit of South-South cooperation, which needs to be understood in the context of the changing global development assistance architecture. The present study indicates that the development assistances from China and India to Ethiopia do have both opportunities and risks. The researcher also recommends policy interventions to minimize the risks and maximize the benefits of the development cooperation, which can be implemented unilaterally by Ethiopia and also by China and India as well as through the cooperation of the three.